Unit 6: Re-apportion Help Needed!

Morris1871
Morris1871 Registered Posts: 8 Regular contributor ⭐ ? ⭐
Hi all

I'm due to take the Unit 6 Simulation in a couple of days time and have one area where for some reason I am completely stuck...

I am doing a past paper, and am on a question where I need to re-apportion a service cost centre to the three production cost centre's according to direct labour cost.

The service CC has overheads of £62,000. Direct labour cost is stated at £330,000. Direct labour hours are at 15,000, 13,000, and 23,000 (amongst the production CCs), giving a total of 51,000 hours.

I've tried a few ways but this is an area my brain has never been able to manage. I've gotten close, getting an answer of 18,000, 16,000, and 28,000 (rounded up).

I checked the answer booklet and know the actual answer is 17, 18, and 27 (000s).

Does anyone know a formula to be used to get the correct answer?


I am sure there is one but I cannot locate it!

Many thanks in advance to anyone who's taking the time to read this and help out, tis greatly appreciated! :)

Comments

  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    Are you using direct labour hours to answer a direct labour cost task?
    Sandy
    [email protected]
    www.sandyhood.com
  • Morris1871
    Morris1871 Registered Posts: 8 Regular contributor ⭐ ? ⭐
    Sandy

    I've tried a few different ways of solving the task, one of which is to divide the direct labour cost by the direct labour hours of each production CC to try and get a % of cost for each production CC that I can use for re-apportion.

    Am I doing something wrong here? I only have the one direct labour cost figure and therefore beleive that I need to use the direct labour hours in order to identify the relevant cost to each prodcution CC to then be able to do the re-apportion?

    I'm getting the feeling I'm missing something simple but I've slept on it and still cannot figure this out.
  • Morris1871
    Morris1871 Registered Posts: 8 Regular contributor ⭐ ? ⭐
    Please ignore this thread.

    Turns out I had pre-test-studying-too-hard syndrome. There are direct labour costs on the page that for I wasn't able to see, despite being right there on the page. Sorry for the pointless thread but thanks for the response regardless.
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