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Total Reapportion for machining department is $23,057 and assembly department is $18.297. The machining department uses 40,000 labour hours for the period. The assembly department
Total Reapportion for machining department is $23,057 and assembly department is $18.297.
The machining department uses 40,000 labour hours for the period.
The assembly department uses 42,000 labour hours for the period.
What is the overhead absorption rate (in $) in the machine department?
What is the overhead absorption rate (in $) in the assembly department?
Now we'll look at a factory with two service departments, canteen and maintenance.
Say the overheads have already been apportioned.
Now we want to reapportion the canteen costs on the basis of employee numbers.
Say 50% to machining, 40% to assembly and 10% to maintenance.
Similarly we want to reapportion maintenance on the basis of time spent in each department.
Say 45% to machining, 50% to assembly and 5% to canteen.
Show reciprocal apportionment.
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