The production department at Geneva Manufacturing incurs annual production overheads of £250,000. There are three support departments for the business, stores, set up and maintenance. The maintenance department's resources are used as follows: 20% by production, 10% by stores, 15% by set up. The other 55% of the maintenance department's resources are used by other departments in the business. In addition, the production department uses 40% of the resources of the stores department and 40% of the resources in the set up department. Support department overheads total up as follows: stores: £100,000, set up: £150,000, maintenance: £80,000. What are the total overheads that will be allocated to the production department?

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The Answer of The production department at Geneva Manufacturing incurs annual production overheads of £250,000. There are three support departments for the business, stores, set up and maintenance. The maintenance department's resources are used as follows: 20% by production, 10% by stores, 15% by set up. The other 55% of the maintenance department's resources are used by other departments in the business. In addition, the production department uses 40% of the resources of the stores department and 40% of the resources in the set up department. Support department overheads total up as follows: stores: £100,000, set up: £150,000, maintenance: £80,000. What are the total overheads that will be allocated to the production department?

The Production Department at Geneva Manufacturing Incurs Annual Production Overheads