\n\n Fuel<\/span><\/p>\n<\/td>\n | \n $80,000<\/span><\/p>\n<\/td>\n | \n Lighting expenses<\/span><\/p>\n<\/td>\n | \n $40,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Repair of plant<\/span><\/p>\n<\/td>\n | \n $75,000<\/span><\/p>\n<\/td>\n | \n General overhead<\/span><\/p>\n<\/td>\n | \n $50,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Rant and tax<\/span><\/p>\n<\/td>\n | \n $60,000<\/span><\/p>\n<\/td>\n | \n Supervision<\/span><\/p>\n<\/td>\n | \n $30,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Cafeteria<\/span><\/p>\n<\/td>\n | \n $25,000<\/span><\/p>\n<\/td>\n | \n Depreciation (building)<\/span><\/p>\n<\/td>\n | \n $70,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\u00a0<\/span><\/p>\nAdditional information:<\/span><\/p>\n\n\n\n\n Activities <\/span><\/p>\n<\/td>\n | \n Production<\/span><\/p>\n<\/td>\n | \n Service<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n \u00a0<\/span><\/p>\n<\/td>\n | \n X<\/span><\/p>\n<\/td>\n | \n Y<\/span><\/p>\n<\/td>\n | \n P<\/span><\/p>\n<\/td>\n | \n Q<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n DLH<\/span><\/p>\n<\/td>\n | \n 40,000<\/span><\/p>\n<\/td>\n | \n 30,000<\/span><\/p>\n<\/td>\n | \n 10,000<\/span><\/p>\n<\/td>\n | \n 20,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Machine capacity (Kw)<\/span><\/p>\n<\/td>\n | \n 8<\/span><\/p>\n<\/td>\n | \n 5<\/span><\/p>\n<\/td>\n | \n 3<\/span><\/p>\n<\/td>\n | \n 4<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Value of plant ($)<\/span><\/p>\n<\/td>\n | \n 600,000<\/span><\/p>\n<\/td>\n | \n 400,000<\/span><\/p>\n<\/td>\n | \n 200,000<\/span><\/p>\n<\/td>\n | \n 300,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Space (square meter)<\/span><\/p>\n<\/td>\n | \n 4,000<\/span><\/p>\n<\/td>\n | \n 3,000<\/span><\/p>\n<\/td>\n | \n 2,000<\/span><\/p>\n<\/td>\n | \n 1,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Light point (No.)<\/span><\/p>\n<\/td>\n | \n 50<\/span><\/p>\n<\/td>\n | \n 30<\/span><\/p>\n<\/td>\n | \n 10<\/span><\/p>\n<\/td>\n | \n 10<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n No. of workers<\/span><\/p>\n<\/td>\n | \n 40<\/span><\/p>\n<\/td>\n | \n 30<\/span><\/p>\n<\/td>\n | \n 20<\/span><\/p>\n<\/td>\n | \n 10<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nRequired: Overhead distribution sheet<\/span><\/p>\n[Answer: Total overhead: X = $176,000; Y = $122,500; <\/span><\/i><\/p>\nP = $68,000; Q = $63,500]<\/span><\/i><\/p>\nSOLUTION: <\/span><\/b><\/p>\nAllocation of Overhead Direct Distribution Sheet<\/span><\/b><\/p>\n\n\n\n\n Activities <\/span><\/p>\n<\/td>\n | \n Base and ratio <\/span><\/p>\n<\/td>\n | \n Total<\/span><\/p>\n<\/td>\n | \n Production<\/span><\/p>\n<\/td>\n | \n Service<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n \u00a0<\/span><\/p>\n<\/td>\n | \n \u00a0<\/span><\/p>\n<\/td>\n | \n \u00a0<\/span><\/p>\n<\/td>\n | \n X<\/span><\/p>\n<\/td>\n | \n Y<\/span><\/p>\n<\/td>\n | \n P<\/span><\/p>\n<\/td>\n | \n Q<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Fuel<\/span><\/p>\n<\/td>\n | \n Kw <\/span><\/p>\n<\/td>\n | \n 8:5:3:4 = 20<\/span><\/p>\n<\/td>\n | \n 80,000<\/span><\/p>\n<\/td>\n | \n 32,000<\/span><\/p>\n<\/td>\n | \n 20,000<\/span><\/p>\n<\/td>\n | \n 12,000<\/span><\/p>\n<\/td>\n | \n 16,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Repair of plant<\/span><\/p>\n<\/td>\n | \n Value of plant<\/span><\/p>\n<\/td>\n | \n 6:4:2:3 = 15<\/span><\/p>\n<\/td>\n | \n 75,000<\/span><\/p>\n<\/td>\n | \n 30,000<\/span><\/p>\n<\/td>\n | \n 20,000<\/span><\/p>\n<\/td>\n | \n 10,000<\/span><\/p>\n<\/td>\n | \n 15,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Rant and tax<\/span><\/p>\n<\/td>\n | \n Space <\/span><\/p>\n<\/td>\n | \n 4:3:2:1 = 10<\/span><\/p>\n<\/td>\n | \n 60,000<\/span><\/p>\n<\/td>\n | \n 24,000<\/span><\/p>\n<\/td>\n | \n 18,000<\/span><\/p>\n<\/td>\n | \n 12,000<\/span><\/p>\n<\/td>\n | \n 6,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Cafeteria<\/span><\/p>\n<\/td>\n | \n No. of workers<\/span><\/p>\n<\/td>\n | \n 4:3:2:1 = 10<\/span><\/p>\n<\/td>\n | \n 25,000<\/span><\/p>\n<\/td>\n | \n 10,000<\/span><\/p>\n<\/td>\n | \n 7,500<\/span><\/p>\n<\/td>\n | \n 5,000<\/span><\/p>\n<\/td>\n | \n 2,500<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Lighting expenses<\/span><\/p>\n<\/td>\n | \n Light point<\/span><\/p>\n<\/td>\n | \n 5:3:1:1 = 10<\/span><\/p>\n<\/td>\n | \n 40,000<\/span><\/p>\n<\/td>\n | \n 20,000<\/span><\/p>\n<\/td>\n | \n 12,000<\/span><\/p>\n<\/td>\n | \n 4,000<\/span><\/p>\n<\/td>\n | \n 4,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n General overhead<\/span><\/p>\n<\/td>\n | \n DLH <\/span><\/p>\n<\/td>\n | \n 4:3:1:2 = 10<\/span><\/p>\n<\/td>\n | \n 50,000<\/span><\/p>\n<\/td>\n | \n 20,000<\/span><\/p>\n<\/td>\n | \n 15,000<\/span><\/p>\n<\/td>\n | \n 5,000<\/span><\/p>\n<\/td>\n | \n 10,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Supervision<\/span><\/p>\n<\/td>\n | \n No. of workers<\/span><\/p>\n<\/td>\n | \n 4:3:2:1 = 10<\/span><\/p>\n<\/td>\n | \n 30,000<\/span><\/p>\n<\/td>\n | \n 12,000<\/span><\/p>\n<\/td>\n | \n 9,000<\/span><\/p>\n<\/td>\n | \n 6,000<\/span><\/p>\n<\/td>\n | \n 3,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Depreciation<\/span><\/p>\n<\/td>\n | \n Space\u00a0 <\/span><\/p>\n<\/td>\n | \n 4:3:2:1 = 10<\/span><\/p>\n<\/td>\n | \n 70,000<\/span><\/p>\n<\/td>\n | \n 28,000<\/span><\/p>\n<\/td>\n | \n 21,000<\/span><\/p>\n<\/td>\n | \n 14,000<\/span><\/p>\n<\/td>\n | \n 7,000<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Total overhead <\/span><\/p>\n<\/td>\n | \n 430,000<\/span><\/p>\n<\/td>\n | \n 176,000<\/span><\/p>\n<\/td>\n | \n 122,500<\/span><\/p>\n<\/td>\n | \n 68,000<\/span><\/p>\n<\/td>\n | \n 63,500<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\u00a0<\/span><\/i><\/p>\nFuel is distributed in kilowatt<\/span><\/i><\/p>\n\n\n\n\n Allocated amount<\/span><\/i><\/p>\n<\/td>\n | \n = Amount x (Ratio <\/span><\/i>\u00f7<\/span><\/i> Sum of ratio) <\/span><\/i><\/p>\n<\/td>\n | \n \u00a0<\/span><\/i><\/p>\n<\/td>\n<\/tr>\n\n\n Production X<\/span><\/i><\/p>\n<\/td>\n | \n = $80,000 x 8 \u00f7 20<\/span><\/i><\/p>\n<\/td>\n | \n = $32,000<\/span><\/i><\/p>\n<\/td>\n<\/tr>\n\n\n Production Y<\/span><\/i><\/p>\n<\/td>\n | \n = $80,000 x 5 \u00f7 20<\/span><\/i><\/p>\n<\/td>\n | \n = $20,000<\/span><\/i><\/p>\n<\/td>\n<\/tr>\n\n\n Service P<\/span><\/i><\/p>\n<\/td>\n | \n = $80,000 x 3 \u00f7 20<\/span><\/i><\/p>\n<\/td>\n | \n = $12,000<\/span><\/i><\/p>\n<\/td>\n<\/tr>\n\n\n Service Q<\/span><\/i><\/p>\n<\/td>\n | \n = $80,000 x 4 \u00f7 20<\/span><\/i><\/p>\n<\/td>\n | \n = $16,000<\/span><\/i><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\u00a0<\/span><\/b><\/p>\nNote:<\/span><\/i><\/b> <\/i><\/b>The entire amounts related to overhead or ratios are allocated as above method. <\/span><\/i><\/p>\n\u00a0<\/span><\/b><\/p>\n\u00a0<\/span><\/b><\/p>\nKeep in Mind (KIM)<\/span><\/b><\/p>\n\n\n\n\n Direct materials and direct wages of production are not recorded in production department. <\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Direct materials and direct wages of service department are recorded in service department.<\/span><\/p>\n<\/td>\n<\/tr>\n\n\n Direct materials and direct wages of service department become indirect overhead for production department. <\/span><\/p>\n<\/td>\n<\/tr>\n\n\n When indirect materials and indirect wages given in the question, they should be written in production department as well service department. <\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\u00a0<\/span><\/b><\/p>\n\u00a0<\/span><\/b><\/p>\n###########<\/span><\/p>\n\n\n\n\n Click on the link for <\/span>YouTube<\/span><\/b> videos<\/span><\/p>\n<\/td>\n<\/tr>\n\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |