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A factory consists of two production cost centres (P&Q) and two service cost centres (X and Y). The total allocated and apportioned overhead for each
A factory consists of two production cost centres (P&Q) and two service cost centres (X and Y). The total allocated and apportioned overhead for each is as follows: P Q X Y 20,000 10,000 5,000 3,000 It has been estimated that each service cost centre does work for other cost centres in the following proportions. P Q X Y Percentage of service cost centre X to 40 60 Percentage of service cost centre Y to 30 30 40 The reapportionment of service cost centre costs to other cost centres (including other service cost centres) fully reflects the above proportions. After the reapportionment of service cost centre costs to other cost centres (including other service centres) has been carried out, what is the total overhead for production cost centre P? Question 3 Answer a. 25,000 b. 23,380 c. 22,900 d. 28,000
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