QUESTION 1
Sydney Co is preparing its production overhead budgets. Cost Centre Expenses and related information have been budgeted as follows:
Required:
Calculate the overheads to be apportioned to the four cost centres.
Extracted text: Machining 24,000 1,400 400 Assembly 36,000 200 800 Finishing 16,000 60 200 Stores Area occupied (square metres) Plant and equipment at cost (£000) Number of employees 4,000 10 20 Direct labour hours Direct wages (£) Machine hours Number of requisitions on stores 16,000 32,600 32,000 310 32,000 67,200 4,000 1,112 4,000 7,200 200 100 Allocated costs Indirect wages Indirect materials 9,000 394 15,000 1,400 4,000 600 6,000 Maintenance Power 1,400 1,600 100 200 400 Other costs (in total) Rent 2,000 600 200 400 Business rates Insurance on building Lighting and heating Depreciation on plant and equipment Wagerelated costs Factory administration and personnel Insurance on plant and equipment Cleaning of factory premises 16,700 28,200 7,100 1,670 800 57,670