1.

The following information is supplied from the costing records of a company

Department
Items Amount Basis A B C
Rent 2000 Floor space (sq.ft) 750 550 450
Maintenance 1200 cost of machinery 480 360 240
Depreciation 900 cost of machinery 360 270 180
Lighting 200 Floor space (sq.ft) 75 55 45
Insurance
Employers 1000 stock of goods 500 300 200
Contribution to PF 300 total direct wages 120 90 60
Energy 1800 cost of machinery 720 540 360
Supervision 3000 Number of workers 1200 800 600
total 4205 2965 2135

Department
Particulars A B C D total
Floor space (sq.ft) 150 110 90 50 400
Number of workers 24 16 12 8 60
total direct wages 8000 6000 4000 2000 20000
cost of machinery 24000 18000 12000 6000 60000
stock of goods 15000 9000 6000 nil 30000

2. Cadila Co. Ltd has three production departments A, B, C and Two service Departments D, E. The following figures are extrac

Department
Items Amount Basis A B C
Rent and rates 5000 Floor space (Sq.ft 1000 1250 1500
Indirect wages 1500 Direct wages 450 300 450
Dep. of Machinery 10000 Value of machiner 2400 3200 4000
General lighting 600 Light points 100 150 200
Power 1500 HP of machine 600 300 500
Sundries 10000 Direct wages 3000 2000 3000
total 7550 7200 9650
direct wages
total 7550 7200 9650

Department
Particulars total A B C D
Floor space (Sq.ft) 10000 2000 2500 3000 2000
Light points 60 10 15 20 10
Direct wages 10000 3000 2000 3000 1500
HP of machine 150 60 30 50 10
Value of machinery 250000 60000 80000 100000 5000

3. The following data was obtained from xyz company for the half year ended 30th September 2012. Prepare overhead distribu

Particulars Production Department Service department

 A B C X Y
Direct wages 7000 6000 5000 1000 1000
Direct Material 3000 2500 2000 1500 1000
Employees 200 150 150 50 50
Electricity (kwh) 8000 6000 6000 2000 3000
Light points 10 15 15 5 5
Asset value 50000 30000 20000 10000 10000
Area occupied 800 600 600 200 200

Apportion expenses of department X in the ratio of 4:3:3 and that of department Y in proportion to direct wages to department A

Production department
Items Basis A B C
Stores overhead 400 Direct Material 120 100 80
Motive power 1500 Electricity (kwh) 480 360 360
electric lighting 200 Light points 40 60 60
labour welfare 3000 Employees 1000 750 750
depreiation 6000 Asset value 2500 1500 1000
repairs and maintenanc 1200 Asset value 500 300 200
general overheads 10000 Direct wages 3500 3000 2500
Rent and taxes 600 Area occupied 200 150 150
Direct wages
Direct Material
total 8340 6220 5100
department X 1640 1230 1230
Department y 1416 1213 1011
total 11396 8663 7341

4. Calculate the overheads applicable to production department A and B. There are also two service departments X and Y. X re
A B X Y total
Floor space 5000 4000 1000 2000 12000
Asset value 10 5 3 1 19
HP of machine 1000 500 400 100 2000
Number of workers 100 50 50 25 225
Light points 50 30 20 20 120

Items Amount Basis A B X

Depreciation 190000 Asset value 100000 50000 30000
Rent and rates 36000 Floor space 15000 12000 3000
Insurance 15200 Asset value 8000 4000 2400
Power 20000 HP of machine 10000 5000 4000
Canteen expenses 10800 Number of workers 4800 2400 2400
electricity 4800 Light points 2000 1200 800
Total 139800 74600 42600
Department X 18360 12240 -42600
Department Y 28620 3180 0
Total 186780 90020 0

5. The following data was obtained from xyz company for the half year ended 30th September 2012. Prepare overhead distribu

Particulars Production Department Service department

 A B C X Y
Direct wages 30000 45000 60000 15000 30000
Direct Material 15000 30000 30000 22500 22500
Employees 1500 2250 2250 750 750
Electricity (kwh) 6000 4500 3000 1500 1500
Light points 10 16 4 6 4
Asset value 60000 40000 30000 10000 10000
Area occupied 150 250 50 50 50

apportion the expenses of service department y according to direct wages and those of service department x in the ration of 5:3

Production department
Items Basis A B C
power 1100 Electricity (kwh) 400 300 200
lighting 200 Light points 50 80 20
stores overhead 800 Direct Material 100 200 200
welfare to staff 3000 Employees 600 900 900
Depreciation 30000 Asset value 12000 8000 6000
repairs 6000 Asset value 2400 1600 1200
general overheads 12000 Direct wages 2000 3000 4000
rent and taxes 550 Area occupied 150 250 50
Direct wages
Direct material
Total 17700 14330 12570
Department X 20765 12459 8306
Department Y 12782 19173 25564
Total 51247 45962 46440
 D (Service)
250
120
90
25
-
30
180
400
1095

ollowing figures are extracted from the records of the company

partment
D E
1000 250
225 75
200 200
100 50
100 -
1500 500
3125 1075
1500 500
4625 1575

E
500
5
500
nil
5000

repare overhead distribution summary.

 total
20000
10000
600
25000
50
120000
2400

ct wages to department A, B, C respectively

Service Deaprtment
X Y
60 40
120 180
20 20
250 250
500 500
100 100
500 500
50 50
1000 1000
1500 1000 ratio direct wages
4100 3640 4 7000
-4100 3 6000
-3640 3 5000
0 0 total 10 18000

epartments X and Y. X renders services worth 12000 to y and balanace to A and B as 3:2. Y renders services to A and B as 9:1

Y
10000
6000
800
1000
1200
800
19800
12000 bal of X X ratio Y ratio bal of Y
-19800 30600 3 9 31800
12000 2 1
total 5 10

repare overhead distribution summary.

 total
180000
120000
7500
16500
40
150000
550

ment x in the ration of 5:3:2 to production department

Service Deaprtment
X Y
100 100
30 20
150 150
300 300
2000 2000
400 400
1000 2000
50 50
15000 30000
22500 22500 ratio direct wages
41530 57520 5 30000
-41530 3 45000
-57520 2 60000
0 0 total 10 135000
s to A and B as 9:1