The following data relates to departments A, B, and C of a company; machine hours: department A-1000hours, B-1500hours, C-1200hours; floor space: department A- 20sqm, B- 15sqm, C- 25sqm. The total production overhead cost of ghc1200000 is made up of rent- ghc800000 and depreciation- ghc400000. The company uses the ABC system to apportion overhead cost. The total overhead cost for department A will be A. Ghc362162.1622 B. Ghc463063.0631 C. Ghc374774.7748 D. Ghc324144.1441

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 8EB: A production department within a company received materials of $7,000 and conversion costs of $5,000...
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The following data relates to departments A, B, and C of a company; machine hours: department A-1000hours, B-1500hours, C-1200hours; floor space: department A- 20sqm, B- 15sqm, C- 25sqm. The total production overhead cost of ghc1200000 is made up of rent- ghc800000 and depreciation- ghc400000. The company uses the ABC system to apportion overhead cost. The total overhead cost for department A will be A. Ghc362162.1622 B. Ghc463063.0631 C. Ghc374774.7748 D. Ghc324144.1441
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