Given these common overhead costs and indirect wages, can you allocate the overheads to departments A, B, C, and D?

To complete the allocation of overhead costs, specific bases for allocation are required for each common cost. The provided image only lists the total amounts for National insurance, Rent and rates, Repairs to plant and machinery, Heating and lighting, and Power, but does not include the necessary allocation bases (e.g., floor area, number of employees, machine hours, power consumption, etc.) for departments A, B, C, and D.

Therefore, it is not possible to complete the table and allocate these costs to the individual departments with the information given.

Here is the information provided:

• Indirect wages & salaries:

  • Dept A: 4,000
  • Dept B: 3,000
  • Dept C: 3,500
  • Dept D: 2,500
  • Total: 13,000

• Common Overhead Costs (Totals only):

  • National insurance: 780
  • Rent and rates: 600
  • Repairs to plant and machinery: 600
  • Heating and lighting: 300
  • Power: 560

To complete the allocation, you would need additional information such as:

• National insurance: Number of employees or total wages per department.
• Rent and rates: Floor area (square meters/feet) occupied by each department.
• Repairs to plant and machinery: Value of machinery, machine hours, or number of machines in each department.
• Heating and lighting: Floor area or number of light points in each department.
• Power: Kilowatt-hours (kWh) consumed or machine hours in each department.

Without this additional information, the allocation cannot be performed.