Page 471 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 471

Answers





                   Calculate the overhead allocated or apportioned to each department using the
                   most suitable basis.


                   Overhead      Basis      Assembly Finishing  Maintenance  Canteen            Total
                                                     $           $               $         $        $

                   Indirect      Allocate        7,000       8,000          3,000      2,000 20,000
                   materials

                   Rent          Area            3,750       7,500          1,875      1,875 15,000

                                 Kw
                   Electricity                   1,000       4,000               0     5,000 10,000
                                 hours

                   Machine       Machine
                   depreciation   value          2,250       1,750            550        450    5,000

                   Building      Area            2,500       5,000          1,250      1,250 10,000
                   maintenance

                   Total                        16,500      26,250          6,675     10,575 60,000

















































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