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  3. 1) jason ltd has two production departments (a and

1) Jason Ltd has two production departments (A and B) and two service departments (Maintenance...

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Accounting

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1) Jason Ltd has two production departments (A and B) and two service departments (Maintenance and Stores). Budgeted overheads for the next year are shown below: Heat and light Repair costs Machinery depreciation Rent and rates Canteen Machinery insurance RM 19,200 9,600 54,000 38,400 9,000 25,000 Details of each department are as follows: Floor area (m) Machinery book value (RM000) Number of employees Allocated overheads (RM000) Material acquisition (%) A 6,000 48 50 15 40 B 4,000 20 40 20 60 Maintenance 3,000 8 20 12 Stores 2,000 4 10 5 Total 15,000 80 120 52 Calculate total overhead costs for each of the departments and reallocate overheads of service departments to production departments based on material acquisition

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