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    agada23's Avatar
    agada23 Posts: 1, Reputation: 1
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    #1

    Jul 2, 2012, 12:06 PM
    Formula for Alloting overhead cost
    The sparkling washing machine company limited produces a standard washing machine in three production departments(machine,assembly and finishing) and two services department(materials handling and production control). Cost for last year when 500 machines were produced were as below;-machine shop- 240000
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Jul 2, 2012, 03:28 PM
    Quote Originally Posted by agada23 View Post
    the sparkling washing machine company limited produces a standard washing maching in three production departments(machine,assembly and finishing) and two services department(materials handling and production control). cost for last year when 500 machines were produced were as below;-machine shop- 240000
    Well you have your choices; machine hours where there is automated assembly and labour hours where it is labour intensive. Since we are not told more about the organisation the choice is yours
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