Step down method Question! Plz help!

System
System Posts: 100,534 🤖 Admin 🤖
Can you help with the following task?

Factory with two production departments, Machining and painting, which are serviced by the maintenance and quality control departments. The maintenance department also spends some time in the quality control department.

Relevant information for a particular period is as follows:
Machining Painting Maintenance QC

Apportion
Overheads £20,000 £40,000 £10,000 £15,000
(primary)

Usage of
service
departments:

-Maintenance 30% 60% - 10%
-QC 50% 50% - -

(this is meant to be a table)

Show the secondary apportionment using the step down method and the resulting total overheads to be attributed to each production department.

(Range - Step down method)



I have typed the task out as i have it on my supplementary questions paper i would be very grateful if any one can help.

Thanks Gem. x

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Step down method Question! Plz help!

    Hi Gem,

    I've written a brief outline of the step-down method here which might be of use.

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Step down method Question! Plz help!

    Thanks Chris thats very kind of you.

    I am very grateful.

    Gem xx
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