Overhead Ananlysis- FAO SANDY


Can some1 be able to help me with regards to answering the question

Basis Department A Department B

Supervisor Rates £20000 No Emplee £10000 £10000

Rates Rents £10000 Area 8000 2000

Labour Hours 1000 500

Machine Hours 50 1000

Furhter Info: The salary costs only realte to Department A. Department B is mainly machien based.

Requirement: Re-apportion the above rates on a more suitable basis and calculate OAR for each department.

Thanks in advance


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