amit company has five departments of which p n r and s are producing departments and 559075

Amit Company has five departments of which P, N, R and S are producing departments and T is a service department. The actual costs for a period are as follows:

Rs

Repairs

2,000

Rent

2,500

Depreciation

1,200

Supervision

4,000

Insurance

1,500

Employer’s liability of employees’ insurance

600

Light

1,800

The following data are also available for the five departments:

Department P

Department N

Department R

Department S

Department T

Area (square feet)

140

120

110

90

40

Number of workers

25

20

10

10

5

Total wages (Rs)

10,000

8,000

5,000

5,000

2,000

Value of plant (Rs)

20,000

18,000

16,000

10,000

6,000

Value of stock (Rs)

15,000

10,000

5,000

2,000

Apportion the costs to the various departments on an equitable basis.

Total

P

N

R

S

T

13600

4451

3626

2582

1997

944

Submit a Comment