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6 A firm supplied the following information: Budgeted overhead costs (service cost centre). ed Maintenance of buildings N$45 000 out of question Budgeted factory overheads

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6 A firm supplied the following information: Budgeted overhead costs (service cost centre). ed Maintenance of buildings N$45 000 out of question Budgeted factory overheads (production cost centres). Machining N$ 176 000 Assembling N$205 000 Budgeted direct labour hours Area (m? Maintenance 1 000 2 000 2600 Machining Assembling 10 000 14001 Total 12 000 5 000 Management has decided to use the area as basis to apportion the cost of the service cost centre between the production cost centres It has further decided to use the direct labour hours as basis to compute the overhead rates of the production cost centres Determine amount of maintenance costs to be apportioned to the assembling department

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