1. A company reapportions the costs incurred by two service cost centres, materials handling and inspection, to the three production cost centres of machining, finishing and assembly.

The following are the overhead costs which have been allocated and apportioned to the five cost centres:

Machining	400,000
Finishing	200,000
Assembly	100,000
Materials handling	100,000
Inspection	50,000

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

	Machining (%)	Finishing (%)	Assembly (%)	Materials handling (%)	Inspection (%)
Materials handling	30	25	35	-	10
Inspection	20	30	45	5	-

Calculate the charge for overhead to each of the three production cost centres, including the amounts reapportioned from the two service centres, using:

1. The continuous allotment (or repeated distribution) method

2. An algebraic (or simultaneous equation) method