Reference no: EM132560623

WPPSCAN group has five departments P,N,R and S are producing departments while T is a service department. The actual costs for the period are as follows.

Repairs 2000
Rent 2500
Depreciation 1200
Supervision 4000
Insurance 1500
Employers liability 600
Light 1800

The following data is also available.

departments                         P                 N            R             S           T
Area (sq.ft)                   140              120       110          90     40
No. of workers               25                  20         10          10      5
Total wages                10000             8000          5000    5000      2000
Value of plants          20000                  18000        16000  10000     6000
Stock value             15000                    10000        5000    2000          -

Required;

Question 1: define the concept of apportionment of costs and apportion the various costs into various departments on equitable basis.

Question 2: Calculate the payments of a worker under Rowan plan and Halsey plan and make conclusions from the following information.

(i) Hourly rate of wages shs. 50.

(ii) Standard time for producing a dozen of items 3 hours.

(iii) Actual time taken by a worker to produce 20 dozens of items. 48 hours.