Overhead distribution

Departmentalization P1 P2 P3 1 Process of dividing the factory into number of Segments Is called Departmentalization P1 P2 P3 S1 S1 Prod Departments Service Dept.

Departmentalization P1 P2 P3 2 Process of allocating and apportioning POHEs to different departments or cost centers (Prod & Service ) Factory Overheads P1 P2 P3 S1 S1 Prod Departments Service Dept.

Departmentalization P1 P2 P3 S1 S1 Service Dept. Factory Overheads Allocation & Apportionment P1 P2 P3 S1 S1 Prod Departments Service Dept.

Service Departments Stores Boiler House Canteen Transport Maintenance Repair Department Maintenance Department Power House Fire Protection Canteen Purchase Tool Room Personnel Department Stores Boiler House Time-Keeping Transport

Distribution of Overhead ALLOCATION APPORTIONMENT Specific Costs Common Costs Specific Costs

Distribution of Overhead ALLOCATION Allocating whole amount Of an item of POHs to the department for which The expenditure was incurred Specific Costs

Distribution of Overhead APPORTIONMENT Common costs are apportioned Amongst different departments or cost centers on some basis Common Costs

Principal Basis of Apportionment Of Overheads Floor Area Capital Value Of Assets Number Of Employees Machine Hours Direct Labour Hours Light Points Kilowatt Hours Technical Analysis

Floor Area Occupied Capital Value BASIS FOR APPORTIONMENT Rent, Rates & Taxes, Lighting & Heating Insurance & depreciation of Building, Cost of repairs & maintenance of Building, Air Conditioning Floor Area Occupied Capital Value Insurance & Depreciation on Plant & Machinery, maintenance of PM, Insurance on building, etc

No.Of Employees Machine Hours BASIS FOR APPORTIONMENT No.Of Employees Welfare Expenses, time-Keeping ,pay-roll Office, Canteen, Recreation, Supervision Medical Expenses Machine Hours Repairs & Maintenance of Plant & Machinery

Direct Labour Hrs BASIS FOR APPORTIONMENT Light Points Or Work’s Manager’s Remuneration, Salary of Supervisors etc Light Points Or Kilowatt Hours Electricity Charges

Technical Estimate Horse Power BASIS FOR APPORTIONMENT Technical Estimate Where not possible to apportion on some Bases Technical estimate is made Horse Power Motive Power Expenses

Store Keeping Expenses BASIS FOR APPORTIONMENT Value or Weight of Materials Store Keeping Expenses Truck Mileage Tonnage Truck Hours No.Of Pakages Transport Service Expenses

PRINCIPLES OF APPORTIONMENT Utility or Service Principle Survey Method Ability To Pay Efficiency Principle

PRINCIPLES OF APPORTIONMENT Utility or Service Principle Service or Benefits received By the department

Ability To Pay What the Traffic can bear Basis of Sales or Profit PRINCIPLES OF APPORTIONMENT Ability To Pay What the Traffic can bear Basis of Sales or Profit

Survey Method PRINCIPLES OF APPORTIONMENT When Difficult to select Basis Production Manager’s Salary (Time spent in Each Dept)

PRINCIPLES OF APPORTIONMENT Out put as the basis Higher Production Low Overhead Rate Low Production High OH Rate Efficiency Principle

Quick Check Identify the Basis for following Overheads Rent Plant Repairs Power Depreciation of Building Building Repairs Insurance Of Building Fire Insurance of Stock Lighting Expenses Supervision ESI Employer’s Cont. to PF Amenities To Staff Canteen Gn. Overheads Floor Area Value of Plant Machine Hours/HP/VM Value Of Building Value Of Stock No.Of Light Points No.Of Employees Kilowatt/Value of Plant Direct Wages No.Of Employees/Wages

Summary Of Departmental Overhead Distribution Production Departments Total (Rs) Particulars Basis A B C D (Rs) (Rs) (Rs) (Rs) Rent Area(15:11:9:5) 2,000 750 550 450 250 Plant Maintenance Value Of Mch. (4:3:2:1) 1,200 480 360 240 120 Depreciation Value Of Mch. (4:3:2:1) 900 360 270 180 90 Lighting Area(15:11:9:5) 200 75 55 45 25 Insurance Stock Value(5:3:2) 1,000 500 300 200 -- Employer's Cont to PF Wages (4:3:2:1) 300 120 90 60 30 Energy Value Of Mch. (4:3:2:1) 1,800 720 540 360 180 Supervision No.Of Emp (6:4:3:2) 3,000 1,200 800 600 400 Total 10,400 4,205 2,965 2,135 1,095

Summary Of Departmental Overhead Distribution Production Dept. Total (Rs) SD Particulars Basis A B C D (Rs) (Rs) (Rs) (Rs) Rent Area 10,000 3,750 2,750 2,250 1,250 Repairs To Plant Value Of Plant 6,000 2,400 1,800 1,200 600 Depreciation “ 4,500 1,800 1,350 900 450 Lighting Light Points 1,000 375 275 225 125 Supervision No Of Employees 15,000 6,000 4,500 3,000 1,500 Fire Insurance Value Of Stock 5,000 2,500 1,500 1,000 - Power Value Of Plant 9,000 3,600 2,700 1,800 900 ESI Wages 1,500 600 400 300 200 Total 52,000 21,500 15,27510,675 5,025

Redistribution of Overheads Reapportionment of Overheads Secondary Distribution Of Overheads

JOIN KHALID AZIZ ACCOUNTING(FINANACIAL & COST) OF ICMAP STAGE 1,2,3,4 (NEW CLASSES) CA..MODULE B,C,D PIPFA (FOUNDATION,INTERMEDIATE,FINAL) ACCA-F1,F2,F3 BBA,MBA B.COM(FRESH),M.COM MA-ECONOMICS..O/A LEVELS KHALID AZIZ….. 0322-3385752 0312-2302870 0300-2540827

Service Department Cost Re-Apportionment Production Departments Service Departments Carry out the central purposes of an organization. Provide support that facilitates the activities of production departments.

The Need for Cost Re-Apportionment First, we identify the factor that drives costs in the service department. This cost driver is used as the apportionment base. How are service department costs charged to operating departments?

The Need for Cost Apportionment Second, we measure the consumption of the apportionment base in the operating departments.

The Need for Cost Apportionment Third, we apportion the service department cost based on the relative amount of the apportionment base used in each operating department.

The Need for Cost Apportionment Apportioned service department costs become a part of the overhead in each operating department. What happens to service department costs after they are apportioned to operating departments?

The Need for Cost Apportionment First Stage Apportionment Service department costs are apportioned to operating departments. Service Department (Cafeteria) Operating Department (Machining) Service Department (Accounting) The Products Operating Department (Assembly) Service Department (Personnel)

The Need for Cost Apportionment Second Stage Apportionment Operating department overhead costs and apportioned service department costs are applied to products. Service Department (Cafeteria) Operating Department (Machining) Service Department (Accounting) The Products Operating Department (Assembly) Service Department (Personnel)

Selecting Apportionment Bases Personnel: Number of employees Criteria Custodial: Square footage Easiest Receiving: Units handled Cafeteria: Number of employees Accounting: Staff hours Security: Square footage Power: Kilowatt hours

Re- apportionment Basis No of Purchase Orders or value of Materials Purchased for each Production Department Purchase Department Value or Quantity of Materials Issued No. Of Materials Requisitions Stores

Inspection Hrs. Devoted to each Re- apportionment Basis Internal Transport Weight & Distance Inspection Hrs. Devoted to each Department inspection

Re- apportionment Basis Time Keeping, Security Canteen Welfare Recreation Medical Personnel Pay Roll Number Of Employees Total Labour Hours or Wages or Salaries

Re- apportionment Basis Maintenance Department Hrs. Devoted or Worked for Each Department No .Of Employees Factory Office

Re- apportionment Basis Building Service Deptt Relative Area Of Each Deptt % Of Steam Utilized Boiler House

Interdepartmental Services Problem Re Apportioning costs when service departments provide services to each other Solutions Direct Method Step method Reciprocal method

Direct Method Service Department (Cafeteria) Operating Department (Machining) Interactions between service departments are ignored and all costs are allocated directly to operating departments. Service Department (Custodial) Operating Department (Assembly)

Direct Method Example

Direct Method Example

Direct Method Example Apportionment base: Number of employees INR 360,000 × 20 20 + 30 = INR 144,000 Apportionment base: Number of employees

Direct Method Example Apportionment base: Number of employees INR 360,000 × 30 20 + 30 = INR 216,000 Apportionment base: Number of employees

Direct Method Example = INR 30,000 25,000 25,000 + 50,000 = INR 30,000 Apportionment base: Square feet occupied

Direct Method Example Apportionment base: Square feet occupied 50,000 25,000 + 50,000 INR 90,000 × = INR 60,000 Apportionment base: Square feet occupied

Production Department Overhead Analysis Sheet Items Basis Total (Rs.) Production Department Service Department P1 P2 P3 Office Workshop Indirect wages Indirect materials General overhead Amenities to staff Employer’s contribution to E.S.I. Power Depreciation Apportionment of workshop overhead Apportionment of office overhead Actual Direct wages (4:5:6) No.of employees (6:5:6:3:5) Direct Wages H.P. of machine X Machine hours worked (6:16:15:1) 15% of value of machinery Machine hours (2:4:3) 25,000 10,950 1,500 12,500 1,200 3,800 15,750 3,000 2,000 400 320 600 4,500 500 2,500 1,600 5,250 4,000 480 3,750 10,000 1,100 - 5,000 1,850 100 2,250 70,700 13,820 2,600 3,360 16,250 5,200 4,200 16,330 3,900 5,040 12,600 (-12,600 11,700 (-) 11,700 Allocated overhead Total 19,780 25,650 25,270

Bharat Engineering Works Departmental Overhead Distribution Statement (For 12 Months) Particulars of Expenses Basis of Distribution Total Rs. Production Deptts. Service Dept. A B C S Rent Power Indirect wages Depreciation of machinery Electricity Canteen expenses Direct wages Floor space (30:25:45:20) H.P. of machine (65:30:30:40) Direct Wages (12:14:18:8) Value of machine (50:60:80:10) Light points (7:7:9:5) No. of workers (2:3:6:2) Actual 36,000 8,250 5,200 22,000 5,600 6,500 8,000 9,000 3,250 1,200 5,500 1,400 1,000 --- 7,500 1,500 6,600 13,500 1,800 8,800 3,000 6,000 2,000 800 1,100 91,550 21,350 +5,970 19,900 +3,980 30,400 +9,950 -19,900 Re-distribution of expenses of service department to the production departments on the basis of service rendered 30%: 20%:50% Allocated overhead total (A) Effective labour hours (see workings) (No. of worker x working hours) (B) 27,320 23,880 40,350 Nil 3,200 4,800 9,600 Labour hour rate (A ÷ B) 8.5375 4.975 4.203

Step Method Service Department (Cafeteria) Operating Department (Machining) Once a service department’s costs are apportioned, other service department costs are not allocated back to it. Service Department (Custodial) Operating Department (Assembly)

Step Method Service Department (Cafeteria) Operating Department (Machining) Custodial will have a new total to Apportion to operating departments; its own costs plus those costs allocated from the cafeteria. Service Department (Custodial) Operating Department (Assembly)

Step Method Identify the SD which renders service to larger No’s of other Deptts 2 Distribute its Costs to other Deptts , Including service Department 3 Identify the next service Department. Which renders service to the next largest No’s 4 Continue the process till Amount is Exhausted 5 If all SD renders service to = No of Departments. Than cost of SD with largest amount be taken first

JOIN KHALID AZIZ ACCOUNTING(FINANACIAL & COST) OF ICMAP STAGE 1,2,3,4 (NEW CLASSES) CA..MODULE B,C,D PIPFA (FOUNDATION,INTERMEDIATE,FINAL) ACCA-F1,F2,F3 BBA,MBA B.COM(FRESH),M.COM MA-ECONOMICS..O/A LEVELS KHALID AZIZ….. 0322-3385752 0312-2302870 0300-2540827

Step Method Example We will use the same data used in the direct method example.

Step Method Example Apportion Cafeteria costs first since it provides more service than Custodial.

Step Method Example Apportionment base: Number of employees INR 360,000 × 10 10 + 20 + 30 = INR 60,000 Apportionment base: Number of employees

Step Method Example Apportionment base: Number of employees 20 INR 360,000 × 20 10 + 20 + 30 = INR 120,000 Apportionment base: Number of employees

Step Method Example Apportionment base: Number of employees 30 INR 360,000 × 30 10 + 20 + 30 = INR 180,000 Apportionment base: Number of employees

Step Method Example New total = INR 90,000 original custodial cost plus INR 60,000 apportioned from the cafeteria.

Step Method Example Apportionment base: Square feet occupied 25,000 INR 150,000 × 25,000 25,000 + 50,000 = INR 50,000 Apportionment base: Square feet occupied

Step Method Example Apportionment base: Square feet occupied INR 150,000 × 50,000 25,000 + 50,000 = INR 100,000 Apportionment base: Square feet occupied

Comparison of Methods

SECONDARY OVERHEAD DISTRIBUTION SUMMARY Particulars Total Rs. Base Service Departments (Rs.) Production Departments P Q R S X Y Z Factory overhead Add : Service Dept.costs 5,95,000 Given No. of Employees (50:40:50: 100:125:85) DLHs Rs.80,000 in (6:3:4:3:4) Area (Rs.1,33,000 in (10:30:15: 15) DLHs (Rs.66,000 in 4:3:4) 45,000 -45,000 75,000 5,000 -80,000 1,05,000 4,000 24,000 -1,33,000 30,000 12,000 19,000 -66,000 1,93,000 10,000 16,000 57,000 64,000 12,500 28,500 18,000 83,000 8,500 Total OHEs of prod.depts 3,00,000 1,35,000 1,60,000

Reciprocal Services Method Service Department (Cafeteria) Operating Department (Machining) Interdepartmental services are given full recognition rather than partial recognition as with the step method. Service Department (Custodial) Operating Department (Assembly) Because of its mathematical complexity, the reciprocal method is rarely used.

Trial & Error Method Repeated Distribution Method Reciprocal Services Methods Trial & Error Method Repeated Distribution Method Algebraic Simultaneous Equation Method

Reciprocal Services Methods Trial & Error Method Cost Of one Service Dept (Say A ) is apportioned To another Service Dept (Say B) based on service rendered The cost of another dept (B) plus its share In the cost of first service department (A) Is again apportioned to first service department The amount so apportioned to A will again be apportioned to the service department B The process continues till amount becomes negligible

Total Calculation Of Total Costs Of Service Departments X Y Charge Service Departments (Rs) X Y Total Exp as per Primary Distribution 23,400 30,000 Charge 10% 0f Rs 23,400 (X) to Y 2,340 20% of Rs.32,340 (Y) to X 6,468 10% of Rs.6,468 (X) to Y 647 20% of Rs.647 (Y) to X 129 10% of Rs.129 (X) to Y 13 20% of Rs.12 (Y) to X 3 (Since Rs.3 to be apportioned is very small distribution process is stopped ) Total 30,000 33,000

Secondary Overhead Distribution Summary Particulars Production Departments (Rs.) Total Rs. A B C Total expenses as per primary overhead distribution summary Add Service Dept. Costs : X : Rs.30,000 at 20%, 40% & 30% to A,B, and C Y : Rs.33,000 at 40%, 20% & 20% to A, B & C 80,000 6,000 13,200 70,000 12,000 6,600 50,000 9,000 2,00,000 27,000 26,400 Total 99,200 88,600 65,600 2,53,400

Repeated Distribution Method Reciprocal Services Methods Repeated Distribution Method 1 Distribute the cost of a service Dept . to the Production and service department Using the percentage 2 Apportion the cost of 2nd service department (Aggregate) to production and other service department as per % given 3 Use the same procedure with other service departments till the cost of service departments become negligible

Question A factory is having 3 prod . Departments A,B & C, and 2 service Departments Boiler House and Pump Room. The boiler house was to depend upon the pump Room for supply of water and in turn , depends upon the boiler house for supply of steam power for driving the pump The expenses incurred by the production department during the period are: A Rs 8,00,000,B Rs 7,00,000 And C Rs 5,00,000.The expenses of Boiler house are Rs 2,34,000 and the Pump House Rs 3,00,000.The expenses of Boiler House and Pump house are Apportioned to the prod. departments on the following basis A B C BH PR Expenses Of Boiler House 20% 40% 30% - 10% Expenses Of Pump Room 40% 20% 20% 20% -

Secondary Overhead Distribution Summary Prod Departments (Rs) Service Dept (Rs) Particulars Total Rs Basis A B C Boiler Pump P Distribution 25,34,000 given 8,00,000 7,00,000 5,00,000 2,34,000 3,00,000 Add Service Dept. Costs Boiler House 0 20:40:30:10 46,000 93,600 70,200 -2,34,000 23,400 Pump Room 0 40:20:20:20 1,29,360 64,680 6 4,680 64,680 -3,23,400 Boiler House 0 20:40:30:10 12,936 5,872 19,404 -64,680 6,468 Pump Room 0 40:20:20:20 2,587 1,294 1,294 1,293 -6,468 Boiler House 0 20::40:30:20 259 517 388 -1293 129 Pump House 0 40:20:30:20 52 26 26 25 -129 Boiler House 0 20:40:20:20 5 10 8 -25 2 Pump House 0 40:20:20:20 1 1 0 0 -2 Total 25,34,000 9,92,000 8,86,000 6,56,000 0 0

Reciprocal Services Methods Algebraic Simultaneous Equation Method Total Costs of Service Departments are Expressed in algebraic equation Equations are developed on the basis of Primary distribution & % of service rendered to each other Total Costs of Service Departments can Be calculated by solving EQUATIONS

Algebraic Equation X= OHE’s + % of Y Y= OHE’s + % of X Service Department OHE’S can be apportioned M N P R S R 20% 30% 40% - 10% S 30% 40% 10% 20% -

Quick Check Data The direct method of Apportionment is used. Allocation bases: Business school administration costs (ADMIN): Number of employees Business administration computer services (BACS): Number of personal computers

Quick Check  How much cost will be apportioned from Administration to Accounting? a. INR 36,000 b. INR144,000 c. INR180,000 d. INR 27,000

Quick Check  How much cost will be apportioned from Administration to Accounting? a. INR 36,000 b. INR144,000 c. INR180,000 d. INR 27,000 INR180,000X 20 20 + 80 = INR 36,000

Quick Check  How much total cost will be apportioned from ADMIN and BACS combined to the Accounting Department? a. INR 52,500 b. INR135,000 c. INR 270,000 d. INR 49,500

Quick Check  How much total cost will be apportioned from ADMIN and BACS combined to the Accounting Department? a. INR 52,500 b. INR 135,000 c. INR 270,000 d. INR 49,500 INR 90,000 × 18 18 + 102 = INR 13,500

Quick Check Data The step method of apportionment is used. Apportionment bases: Business school administration costs (ADMIN): Number of employees Business administration computer services (BACS): Number of personal computers

Quick Check  How much total cost will be apportioned from ADMIN and BACS combined to the Accounting Department? a. INR 35,250 b. INR 49,072 c. INR 18,000 d. INR 26,333

Quick Check  How much total cost will be apportioned from ADMIN and BACS combined to the Accounting Department? a. INR 35,250 b. INR 49,072 c. INR 18,000 d. INR 26,333

Overhead Appropriation Few Questions

4. SECONDARY DISTRIBUTION SUMMARY Cost of service department Basis of apportionment Total Rs. Production Department P1 P2 P3 primary distribution Canteen Power house (light) Power house (power) Stores Time keeping & accounts Repair shop --- No. of employee (6:5:4) No. of light points (3:4:5) House Power (3:2:3) No. of requisitions (4:3:5) Value of assets (2:3:4) 63,000 1,500 1,200 4,000 3,600 3,000 4,500 20,000 600 300 1,000 18,000 500 400 900 25,000 800 2,000 Allocated overhead Total 80,800 25,800 23,300 31,700

Production Department 1. Overhead Analysis Sheet Items Basis Total (Rs.) Production Department Service Department P1 P2 P3 Office Workshop Indirect wages Indirect materials General overhead Amenities to staff Employer’s contribution to E.S.I. Power Depreciation Apportionment of workshop overhead Apportionment of office overhead Actual Direct wages (4:5:6) No.of employees (6:5:6:3:5) Direct Wages H.P. of machine X Machine hours worked (6:16:15:1) 15% of value of machinery Machine hours (2:4:3) 25,000 10,950 1,500 12,500 1,200 3,800 15,750 3,000 2,000 400 320 600 4,500 500 2,500 1,600 5,250 4,000 480 3,750 10,000 1,100 - 5,000 1,850 100 2,250 70,700 13,820 2,600 3,360 16,250 5,200 4,200 16,330 3,900 5,040 12,600 (-) 12,600 11,700 (-) 11,700 Allocated overhead Total 19,780 25,650 25,270

Overhead rate per working hour [(A) ÷(B)] 2. OVERHEAD ANALYSIS SHEET Items Basis Total (Rs.) Production Deptt .(Rs) Service Deptt( Rs). P1 P2 P3 S1 S2 Rent and rates General lighting Indirect wages Power Depreciation Direct wages Indirect materials Apportionment of Service Departments Overhead Floor space (4:5:6:4:1) Light points (2:3:4:2:1) (600:400:600:300:39) H.P. of Machine (6:5:5:1) Value of machines (12:16:20:1:1) Actual (3:2:3) Given (2:3:5) Total (A) Working hours (B) 5,000 600 1,939 1,500 10,000 1,695 966 1,000 100 2,400 - 300 1,250 150 400 3,200 200 500 4,000 250 50 39 195 266 21,700 1,200 5,500 800 7,000 (-) 3,200 (-) 1,000 6,400 2,560 6,600 3,000 8,700 Nil Overhead rate per working hour [(A) ÷(B)] 2.50 2.20 5.80

( Rs) COST OF PRODUCT – X Direct material Direct Labour Prime Cost Factory Overhead : P1 : 4 x 2.50 P2 : 5 x 2.20 P3 : 3 x 5.80 Cost of Product X 10.00 11.00 17.40 50.00 30.00 80.00 38.40 118.40 ( Rs)

3. SECONDARY OVERHEAD DISTRIBUTION SUMMARY Particulars Total Rs. Base Service Departments (Rs.) Production Departments P Q R S X Y Z Factory overhead Add : Service Dept.costs 5,95,000 Given No. of Employees (50:40:50: 100:125:85) DLHs Rs.80,000 in (6:3:4:3:4) Area (Rs.1,33,000 in (10:30:15: 15) DLHs (Rs.66,000 in 4:3:4) 45,000 -45,000 75,000 5,000 -80,000 1,05,000 4,000 24,000 -1,33,000 30,000 12,000 19,000 -66,000 1,93,000 10,000 16,000 57,000 64,000 12,500 28,500 18,000 83,000 8,500 Total OHEs of prod.depts 3,00,000 1,35,000 1,60,000

5. OVERHEAD DISTRIBUTION STATEMENT Particulars of Expenses Basis of Apportionment Total Rs. Production Deptts. Service Deptts. X Y A B Depreciation Rent, Rates & Taxes Power Ins.on assets Canteen exp. Electricity Direct wages Direct material Assets value (10:5:3:1) Floor space (5:4:1:2) H.P. of machine (10:5:4:1) No. of workers (100:50:50:25) Light points (25:15;10:10) Actual 38,000 18,000 12,500 9,500 5,400 3,600 8,000 4,000 20,000 7,500 6,250 5,000 2,400 1,500 --- 10,000 6,000 3,125 2,500 1,200 900 600 2,000 3,000 625 500 3000 99,000 42,650 +11,150 23,725 +7,433 22,300 -22,300 10,325 +3,717 Re-distribution of expenses of Deptt. A among X, Y and B in ratio 3:2:1 Re-distribution of expenses of Dept. B between X and Y equally 53,800 +7,021 31,158 Nil 14,042 -14,042 Allocated overhead 60,821 38,179

7. STATEMENT SHOWING OVERHEAD EXPENSES OF PRODUCTION DEPARTMENTS A AND B Particulars of Expenses Basis of Apportionment Total Rs. Production Deptts. Service Deptts. A B C D Direct material Direct labour Depreciation Rent,Rates & Tax Insurance Power Canteen exp. Electricity Actual Value of Assets (10:5:3:1) Floor space (5:4:1:2) H.P. of machine (10:5:4:1) No. of workers (100:50:50:25) Light points (25:15;10:10) 5,000 15,000 95,000 18,000 7,600 10,000 5,400 2,400 --- 50,000 7,500 4,000 1,000 25,000 6,000 2,000 2,500 1,200 600 3,000 1,500 400 500 1,58,400 69,900 37,300 34,300 16,900 Re-distribution of expenses of service department ‘C’ Rs. 12,000 to D and balance of Rs. 22,300 to A:B= 3:2 Re-distribution of expenses of service Department “D” to A:B = 9:1 +13,380 +8,920 (-) 34,300 +12,000 83,280 26,010 46,220 2,890 Nil 28,900 (-)28,900 Allocated overhead total 1,09,290 49,110

thanks

ATTENTION COMMERCE STUDENTS ACCOUNTING(FINANACIAL & COST) OF ICMAP STAGE 1,2,3,4 (NEW CLASSES) CA..MODULE B,C,D PIPFA (FOUNDATION,INTERMEDIATE,FINAL) ACCA-F1,F2,F3 BBA,MBA B.COM(FRESH),M.COM MA-ECONOMICS..O/A LEVELS KHALID AZIZ….. 0322-3385752 0312-2302870 0300-2540827