A.

Indirect Cost Centres

General Admin 2,000
Personnel 1,000
Purchase 1,000

Total General Overheads 4,000

Production Cost Centres

Fabrication Assembly
Investment 4,200 2,000 6,200
Direct Labour Hours 2,100 3,500

B.Initial Allocation to Cost Centres

Allocation Of Genl O/H 2,710 1,290 4,000
Indirect Labour 3,400 2,500
Supplies 1,000 400
Others 3,500 400
TOTAL 10,610 4,590 15,200

C. Calculation of Overhead Rate

Overhead Rate 5.0522 1.3115

Job 101
(Started and Finished in the given time period)
No.of items in Job 100
Direct Labour hours uesd in Fabrication 2,000
Direct Labour hours uesd in Assembly 2,200

Fabrication
Direct Materials 35,000
Direct Labour 40,000
Allocation of Overhead 10,104
Total 85,104

Assembly
Direct Materials 500
Direct Labour 44,000
Allocation of Overhead 2,885
Total 47,385

Total Cost 132,490

Cost per Unit 1,324.90
 PRODN DEPTL.OH
DEPTS RATES

Fabricatio RATE 1
2,710 n(7,900)

OVERHEAD Assembl
y RATE 2
COST 1,290 (3,300)

STAGE 1: O/H Assigned to STAGE 2: O/H Allocated

Prodn. Depts. to Products
PTL.OH
PRODUCTS
ATES

During Fabrication
5.0522 per DLH Direct Materials
RATE 1 Direct Labour

During Assembly
RATE 2 Direct Materials
1.3115 per DLH Direct Labour

2: O/H Allocated
ucts