Unit 6: Re-apportion Help Needed!

Morris1871

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!

SandyHood

Are you using direct labour hours to answer a direct labour cost task?

Morris1871

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

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.