another question d1963 unit 6

reapportion stores of 29439 to cutting, stitching and packing.

i originally went with splitting it 3 ways, but does not look right. on the notes it says to re-apportion to the 3 cost centres using the direct method.

please help as i cannot figure this out, am i missing something?

Tracy

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  • sdv
    sdv Registered Posts: 585
    taskey wrote: »
    reapportion stores of 29439 to cutting, stitching and packing.

    i originally went with splitting it 3 ways, but does not look right. on the notes it says to re-apportion to the 3 cost centres using the direct method.

    please help as i cannot figure this out, am i missing something?

    Tracy

    The instructions are given on Page 13 of Data & Task

    3. Service cost centre re-apportionment (secondary apportionment)
    Service cost centre costs are re-apportioned to the three production cost centres using the direct (Ignore approtioning to the maintencence departments. Only apportion to the production departments for the full overheads)



    Apportion Basis .........Cutting, Stitching, Packaging, Maintenence
    Stores requisitions ........60......... 30........... 50........... 55 -
    Maintenance hours....... 21.......... 90......... 130


    Therefore £29,439 divide by (140) (60+30+50) and multiply by 60 for cutting dept =£12,617

    Rest you can work out
  • taskey
    taskey Registered Posts: 1,800
    do you know, i could not see it, i have a page of workings, but nothing looked right

    thanks for that

    Tracy
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