Overheads Illustrations I.
Primary and Secondary Distribution Summary 1.
A company has three production departments A, B and C and two service departments, X and Y. The following data are extracted from the records of the company for a particular period. Sr. No.
Particulars
Amount ( Rs.)
01
Rent and Taxes
25,000
02
General lighting
3,000
03
Indirect Wages
7,500
04
Power
7,500
05
Depreciation of Machinery
50,000
06
Sundries
50,000
Additional Data Particulars
Total
Dept. A
Dept. B
50,000
15,000
10,000
15,000
7,500
2,500
150
60
30
50
10
—
Cost of Machinery (Rs.)
12,50,000
3,00,000
4,00,000
5,00,000
25,000
25,000
Production hrs worked
—
6226
4028
4066
—
—
10,000
2,000
2,500
3,000
2,000
500
60
10
15
20
10
05
Direct Wages (Rs.) Horsepower of Machines
Floor space (sq.mtrs) Lighting points ( Nos.)
Dept. C Dept. X
Dept. Y
Service Departments’ Expenses Allocation :Department
A
B
C
X
Y
X (%)
20 30 40 — 10
Y (%)
40 30 20 10 —
You are required to, A. Prepare primary and secondary distribution summary according to repeated distribution System.
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