Question
A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocated and apportioned overhead
A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocated and apportioned overhead for each is as follows:
PQXY
$95,000 $82,000 $46,000 $30,000 Ithasbeenestimatedthateachservicecostcentredoesworkfortheothercostcentresin the followingproportions:
PQXY
Percentage of service cost centre X to 40 40 Percentage of service cost centre Y to 30 60
20 10
Afterthereapportionmentofservicecostcentrecostshasbeencarriedoutusingamethod thatfullyrecognisesthereciprocal servicearrangementsinthefactory,whatisthetotal overheadforproductioncostcentreP?
A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocated and apportioned overhead for each is as follows:
PQXY
$95,000 $82,000 $46,000 $30,000 Ithasbeenestimatedthateachservicecostcentredoesworkfortheothercostcentresin the followingproportions:
PQXY
Percentage of service cost centre X to 40 40 20 Percentage of service cost centre Y to 30 60
10
Afterthereapportionmentofservicecostcentrecostshasbeencarriedoutusingamethod thatfullyrecognisesthereciprocal servicearrangementsinthefactory,whatisthetotal overheadforproductioncostcentreP?
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