Help!!

aimz_dee

I am taking my exam this afternoon-ECR.

My mind is blank and I need help!!


I need to know the different methods to allocate overheads between departments? I am so stressed and confused!!!


Aimee xx

anniem

Don't fret, it'll probably only affect one or two parts of a question and as long as you use whatever figure you arrive at for your subsequent workings you will be fine.

The paper will give you a good idea of how to apportion the costs;

it might be by floor space, machine hours or number of employees, depending upon the overhead being allocated.

For instance; if it is heat and light, then the correct choice would probably be floor space - as heat and light would be distributed evenly through the building.

If it is canteen; then you would probably choose to allocate to number of employees - on the basis that the canteen will be used by all employees.

If you were to apportion the maintenance man as an overhead - then machine hours might be the most appropriate as he would probably spend more time working on the machines that worked hardest.

I hope this helps; just don't panic in the exam, go with your instinct and remember if you get it wrong in the first working you might lose a mark but, if you continue to use the wrong figures it doesn't matter - just keep showing your workings and you will still get marks for the correct technique even if your answer is wrong. If you put a wrong answer with no workings you won't get any points - so always show all your workings.

GOOD LUCK

Annie x