June 2007 Exam

jewels.p

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!

SandyHood

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.

jewels.p

So it's my Calculators Fault! lol

Thanks Sandy

taskey

i always blame my calculator lol

Tracy