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A manufacturing organisation has three production cost centres, the cutting department, the processing department and the finishing department, and two service cost centres, the stores and the canteen.
Budgeted information for the following 6 month period is available as follows:
£
Direct materials 155,200
Direct labour
Cutting 15,000
Processing 35,000
Finishing 10,000
Canteen 6,240 66,240
Indirect materials
Cutting 25,500
Processing 10,200
Finishing 7,300
Stores 3,000
Canteen 2,200 48,200
Indirect labour
Cutting 4,200
Processing 10,500
Finishing 3,000
Stores 12,800
Canteen 4,500 35,000
Rent 12,000
Supervisor's wages 12,000
Machinery insurance 3,300
Maintenance expenses 5,400
The following information is also provided:
Total
Cutting
Process'g
Finish'g
Stores
Canteen
Direct labour hours
8,600
2,730
4,550
1,320
-
Direct machine hours
11,100
6,500
1,900
2,700
Floor area
(sq m)
50,000
20,000
18,000
8,000
2,000
Maintenance hours
1,100
400
100
Materials requisitions
1,800
1,200
300
Number of employees
90
20
35
5
10
Supervisor's time in each department (hours)
960
480
360
30
0
Value of machinery
£150,000
£60,000
£50,000
£30,000
£5,000
You are required to:
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