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kindly help me with this question I don't have a clue at all b) A company has 2 Two production cost center (A and B)
kindly help me with this question I don't have a clue at all
b) A company has 2 Two production cost center (A and B) and two Service cost centers (X and Y) the total Budgeted overheads of the organisation have been calculated as ksh 360,000. They are to be apportioned to the cost centers using Floor area. Centre A Centre B Centre X Centre Y Floor area 16000 12000 9600 6400 Use of X services 50% 30% 20% Use of Y's services 40% 35% 25% Required: Apportion the total overheads to the Cost centers (2mks) i. 1 iii. Re-apportion service center costs to production cost centers using the algebraic method and calculate the total overhead to Centre A and B after the re-apportionment (5mks) If the budgeted production units in production cost center A was budgeted at 7500 units, calculate the OAR per unit (1.5mks) iv)Discuss reasons why there may be an over or under absorption in production costs center B (1.5mks) ivStep by Step Solution
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