Professional Documents
Culture Documents
X Y Z 1 2
12:9:6:3:3
5:8:2:3:2
2:4:4:3:3
Welfare of 3,000 Staff 600 900 900 300 300
Staff number
2:3:3:1:1
6:4:3:1:1
6:4:3:1:1
3:5:1:1:1
SOLUTION 2
(6:4:3:2)
SOLUTION 3
Statement of Primary Distribution of overhead cost
Production dept Services
Overhead
Sr. Total Basis of Dept
Expense
No Rs. apportionment A B C D.
.
Rs. Rs. Rs. Rs.
(15:11:0:5)
Plant (4:3:2:1)
(15:11:0:5)
(4:3:2:1)
Stock (5:3:2)
(6:4:3:2)
SOLUTION 4
Indirect Material Actual 2000 3000 3000 1000 2000 2000 13000
Indirect Wages Actual 3000 3000 4000 10000 10000 5000 35000
Rent Area(Rs.10 per meter) 2000 2500 3000 1500 1000 2500 12500
Light Area Rs. 1 per sq mt 200 250 300 150 100 250 1250
Overhead
Service
At first we have to calculate total overhead of each service dept including O.H
chargeable of other dept. Hence assume total O.H of service dept.
‘P’ PS ‘X’ and total O.H of service dept ‘Q’ PS ‘Y’
The total OH service dept ‘P’ = Actual OH + 20% of Q and total OH service dept
= 4500 + y /5
= 2000 + x/10
X = 4500 + y
Y = 2000 + x
10
and selling these two equations we get the total OH of each service dept as
under.
5 x = 22500 + y (multiplying by 5)
5 x – y = 22500
x + 10 y = 20000
We have 5 x – y = 22500
5 x + 50 y = 1,00,000
49 y = 1,22,500
Y = 2500
A B C
OH service
SOLUTION 6
Statement of primary distribution of OH
10:16:16:3:5
2:3:#:1:1
Deptt Y 29 12:7:1 19 10 - - -
SOLUTION 7
Calculation of labour hour rate
= 2,40,000 less 5%
= 2,28,000 hours
2,28,000
Rs.
100
Machine expenses
166 0.90
SOLUTION 9
Computation of machine hour rate
Rs. Per hour
Depreciation -
SOLUTION 10
(a) Overhead recovery rates
10000
(2) P.C on works cost = 90000 x 100 = @ 20%
4,50,000 1
540000 540000
= @ 15% = @ 11.5%
15 kg @ 20 300 720.00
Works cost
1517.16
Office cost
1820.5900
Total cost
2303.0464