June 2007 Exam

I am on Task 1.4 Allocating overheads and cant get the right answer for the allocation of the Depreciation for the Buses.

The Total NBV for the buses is £32,000,000 (£22,400,000 for Scheduled Services and £9,600,000 for Contract Services)

Depreciation is £3,216,600.

Divide the Depreciation amount by the total NBV and then multiply by the NBV for each department (Is that not right?)

My answers are completely wrong cause when I try to work it back to double check its wrong.

HELP!

Comments

  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    I did the same calculation

    £3,216,600 =0.10051875................... 22,400,000................... £2,251,620 Scheduled Services
    32,000,000........................................9,600,000.................-.... £964,980Contract Services
    ........................................................................................£3,216,600

    My hint
    Calculate the overhead cost per £1.00 of NBV (in this case £0.10051875) and leave it in your calculator
    then if you have an old style calculator enter the times symbol twice (xx)
    Then enter the NBV in Scheduled Services and =
    and the NBV in Contract Services and = (without anything else)

    And every time you press = you get the apportioned amount.
    Sandy
    [email protected]
    www.sandyhood.com
  • jewels.p
    jewels.p Registered Posts: 1,774
    So it's my Calculators Fault! lol

    Thanks Sandy
  • taskey
    taskey Registered Posts: 1,800
    i always blame my calculator lol

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