HELP! Management Accounting- Level 3 Apportionment of overheads table

gianlucapensotti

I have been trying to figure out the below question for some time however I am really struggling!

Please could someone help with how the cutting and assembly section for the Depreciation charge has been calculated?

Pian32

So first you're likely to get a quicker response if you post in the correct forum (this is the level 2 one) as others studing will be able to help.

For the depreciation it's done as a percentage of value as you'll have a higher depreciation charge on a higher net value.

So 100,000+40,000 = 140,000 total
Cutting = 100,000/140,000 *4200 = 3000
Assembly = 40,000/140,000 * 4200 = 1200

This method continues for the other catagories by using the relevant figures, e.g power use for the power cost allocation.

gianlucapensotti

Thank you! This is level 3 as it has appeared in my management accounting textbook?

Pian32

I meant the forum. The foundation certificate is level 2 if you look at the path at the top click on AQ2016 then the Advanced Diploma