aimz_dee Registered Posts: 1 New contributor ?
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
    anniem Registered Posts: 1,326
    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.


    Annie x
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
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