A company reapportions the costs incurred by its two service centres D and E to its three production centres A, B and C. The following are the overhead costs, which have been allocated and apportioned to the five cost centres:

Estimates of the benefits received by each cost centre are as follows:

You are required to calculate the charge for overhead to each of the three production cost centres, including the amounts reapportioned from the two service centres using the continuous allotment or repeated distribution method.

Transcribed Image Text:

Rs Machining 4,00,000 Finishing 2,00,000 Assembling 1,00,000 Material handling 1,00,000 Inspection 50,000