another question d1963 unit 6

taskey

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

sdv

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

do you know, i could not see it, i have a page of workings, but nothing looked right

thanks for that

Tracy