Overhead Ananlysis- FAO SANDY

Hi,

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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