Ouestion $2$

Production overheads allocated and apportioned to cost centres in a factory for a period, along

with additional data are:

Additional data:

Overheads allocated and apportioned to Service Cost Centre $x$ are re$-$apportioned on the

following basis:

Production Cost Centre A $20\%,$ Production Cost Centre B $45\%,$ Production Cost Centre C $35\%.$

Overheads allocated and apportioned to Service Cost Centre Y are re$-$apportioned on the basis of

the number of employees in the other cost centres.

Production overheads are absorbed on the basis of direct labour hours.

Required:

a$.$ Re$-$apportion the Service Cost Centre overheads

$(11$ marks$)$

b$.$ Calculate an overhead absorption rate for each production cost centre

$(6$ marks$)$

c$.$ Calculate the total production cost of Job $57.$Direct production costs of job are:

Direct materials $$1,678$

Direct labour:

$(8$ marks$)$