Company B is a manufacturing company. The production process is divided into two production departments: Assembly and Finishing. There is one service department, the Stores department, which is used by both production departments. The relevant information for the year ahead is as follows: Total Overheads for all the departments: Item Total (£) 20,000 60,000 80,000 Depreciation Rent TOTAL The following information is available about each department: Assembly Finishing Stores 75,000 20,000 5,000 Item Floor Space (m²) Value of machinery (£) Stores requisitions 50,000 1,000 50,000 1,000 Considering this information, which of the following statements is true? O a. Total overheads allocated to the Assembly department equal £23, 500. O b. Total overheads allocated to the Finishing department equal £23, 500. O c. Total overheads allocated to the Assembly department equal £55,000 and total overheads allocated to the Finishing department equal £22,000. O d. None of the answers is true.
Company B is a manufacturing company. The production process is divided into two production departments: Assembly and Finishing. There is one service department, the Stores department, which is used by both production departments. The relevant information for the year ahead is as follows: Total Overheads for all the departments: Item Total (£) 20,000 60,000 80,000 Depreciation Rent TOTAL The following information is available about each department: Assembly Finishing Stores 75,000 20,000 5,000 Item Floor Space (m²) Value of machinery (£) Stores requisitions 50,000 1,000 50,000 1,000 Considering this information, which of the following statements is true? O a. Total overheads allocated to the Assembly department equal £23, 500. O b. Total overheads allocated to the Finishing department equal £23, 500. O c. Total overheads allocated to the Assembly department equal £55,000 and total overheads allocated to the Finishing department equal £22,000. O d. None of the answers is true.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 8E: A manufacturing company has two service and two production departments. Building Maintenance and...
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