Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company runs two production cost centres M1 and M2, and two service cost centres S1 and S2. The total allocated and apportioned overheads for
A company runs two production cost centres M1 and M2, and two service cost centres S1 and S2. The total allocated and apportioned overheads for each are as follows:
M1 | M2 | S1 | S2 |
30,000 | 35,000 | 10,000 | 15,000 |
It has been estimated that each service cost centre does work for other cost centres in the following proportions:
| M1 | M2 | S1 | S2 |
% of service cost centre S1 to: | 55% | 45% | - | - |
% of service cost centre S2 to: | 40% | 45% | 15% | - |
Calculate the total overheads for production cost centre M1 after the reapportionment of service cost centre costs have been carried out.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started