Kingston Kitchens Ltd has expanded and now makes kitchen cabinets of different sizes. Instead of a single production department, John has found it more efficient to divide the work into separate stages and there are now three departments, each of which is a separate cost centre. The following information is available.

The maintenance department provides services to the two production departments.
Complete the production overhead analysis below by showing the basis of apportionment and the overhead to be borne by each cost centre.
The allocated overheads have been entered for you. Once you have calculated the subtotal for the three cost centres, you must apportion the costs of the service cost centre (the maintenance department) over the two production departments on an appropriate basis.

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Area Number of employees Value of machinery Joinery department 200 sq metres 12 250,000 Finishing department 200 sq metres 16 100,000 Maintenance department 100 sq metres 4 50,000