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The costs allocated to each cost center are as follows: Q3: Cost Centers/Costs Production Department Service Department A B X Y Total Cost Total of
The costs allocated to each cost center are as follows: Q3: Cost Centers/Costs Production Department Service Department A B X Y Total Cost Total of Primary Distribution 40.000 45.000 55.000 8.000 7.160 155.500 There is a reciprocal relationship between cost centers. X Service Cost center based on the number of workers, Y Service Cost center will be apportioned on the base of m2. A B Y Total Number of Workers 152 114 76 400 20 450 38 300 m2 4.500 1.350 2.700 9.300 a) Calculate the benefits received from each service department. (5 p.) b) Calculate the X Service Center's total cost subject to re-distribution. (5 p.) c) Calculate the Y Service Center's total cost subject to re-distribution. (5 p.) d) Re-allocate the cost of service cost centers (5 p.)
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