Production

Basis of Aportionment MCA

1 Indirect Wages 2 Indirect Consumable 3 Depreciation Insurance MC Insurance Building Power L&H Rent Notional Rent Direct Direct MC Value MC Value Area Sq Feet HP Area Sq Feet Area Sq Feet Own Building 23260 6300 8800 1600 600 2057 600 1500 0

MCB
20670 9100 6600 1200 360 1371 720 1800 0

ASSEMBLY
8110 2110 2200 400 480 172 960 2400 0

TOTAL after primary distribution

Secondary Distribution 10 Stores Eng Gen Indirect Consumables MC Hrs MC Hrs

44717
2698 4040 2200

41821
3898 5050 1650

16832
904 3300

TOTAL AFTER SECONDARY DISTRIBUTION

53655

52419

21036

Absorption Rate (divide by total hours) Total MC Hours MC Hr. Rate Labour Hrs Labour Hrs Rate

40000 1.34

50000 1.05 300000 0.07

Prod OH for X & Y Prod X Hrs. Cost Per Unit of X (To make one unit of X) Mac hr rate into x hrs Prod y Hrs. Cost Per Unit of Y (To make one unit of Y) Mac hr rate into y hrs 5 1.34 *5 3 4.02 2 2.1 0.07 * 7 7 7.34 7 8 0.63

1. First Service Department is Stores, Based on Value of consumable goods, you can charge stores to production, because of ab enough information. Store would have only given consumables out. (7500 - divided in ratio of indirect expenses)

2. Engineering - Eng cost has to take to only machine shop A & B, as eng services hav been used for them and split them on bas mach hours on A & B. (enginerring is divided between jus MAC A & B and use machine hours as basis) 3. General Service - In absence of enough drivers, use labor hours.

Services
STORES
4100 1400 880 160 120 0 240 600 0

ENG SERV G SERV

2670 2100 2640 480 150 0 300 750 0 3760 1600 880 160 90 0 180 0 480

TOTAL
62570 22610 22000 4000 1800 3600 3000 7050 480

7500

9090

7150 127110

127110

bsence of

asis of

Depart MC ment Value MC Shop A MC Shop B Assemb ly Stores Eng serv Gen serv
Total

Are sqft HP Direct Hours% Lab hrs 5000 6000 8000 2000 2500 1500
25000 87.5 650000

MC Hrs

60000 45000 15000 6000 18000 6000

150000

50 33.33 4.17

200000 150000 300000

40000 50000

90000

MC Value

Ind Consumer MC Hrs Lab Hrs

6300 40000 200000

9100 50000 150000

2110 300000