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i. need the answer asap pleasee!!! Metal Bashing Ltd produces parts for machines. The factory space is divided into three production areas: preparation, tooling and
i. need the answer asap pleasee!!!
Metal Bashing Ltd produces parts for machines. The factory space is divided into three production areas: preparation, tooling and finishing. These are used as cost centres to which costs are allocated or apportioned. The management accountant has asked for a schedule that shows how certain production overheads are apportioned between the three cost centres. The following information about costs is available: General costs (rental, insurance, cleaning) Canteen costs Machine depreciation Machine maintenance and repair Supervisory salaries 700,000 18,496 17,650 2,961 23,358 You should note that the following information is required so that the allocation/apportionment can be done: Cost Centre Total Preparation Tooling Finishing Floor area (square metres) 20,000 7,000 9,000 4,000 Number of employees 34 16 12 6 Machine value 176,500 26,000 112,000 38,500 Maintenance and repair call 2 6 1 outs Required Using the information you have been given, prepare a suitable schedule showing how the overheads are to be allocated/apportioned between the three cost centres of the factory. You are required to show the basis upon which the overheads have been dealt with Step by Step Solution
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