Reapportion of service cost centers

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MarinaD
MarinaD Registered Posts: 2
in Management Accounting: Costing
Hello, everyone.
I am struggling to understand how do we get the answers for stores and maintenance reapportion for cutting and assembly. Please see photos attached.
Any information and help are appreciated.

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  • PeterC
    PeterC Registered, Tutor Posts: 245 Dedicated contributor 🦉
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    Stores reapportionment is based on requisitions, 1,440 (60%) for Cutting and 960 (40%) for Assembly, a total of 2,400.
    The Stores overhead is £44,545. 60% of this is £26,727, 40% is £17,818

    Maintenance reapportionment is based on hours, 1,288 (80%) for Cutting and 322 (20%) for Assembly, a total of 1,600.
    The Maintenance overhead is £34,245. 80% of this is £27,396, 20% is £6,849
  • MarinaD
    MarinaD Registered Posts: 2
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    Thank you.
  • PeterC
    PeterC Registered, Tutor Posts: 245 Dedicated contributor 🦉
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    You're welcome

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