18. Production overheads allocated and apportioned to cost centres in a factory for a period, along with additional data, are: Allocated overheads Apportioned overheads Additional data: Number of employees Direct labour hours Machine hours Production Cost Centre A B $17,628 $38,490 $29,938 $45,841 14 5,200 1,400 21 2,170 7,460 Service Cost Centre X $3,795 $4,640 C $14,671 $28,360 14 4,780 580 Y $6,130 $5,750 8

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 15E: Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are...
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18.
Production overheads allocated and apportioned to cost centres in a factory for a
period, along with additional data, are:
Allocated overheads
Apportioned overheads
Additional data:
Number of employees
Direct labour hours
Machine hours
Production Cost Centre -
B
A
$17,628 $38,490-
$29,938
$45,841
(a)
(b)
14
5,200
1,400
21
2,170
7,460
C
$14,671
$28,360
14
4,780
580
Page
Service Cost Centre
X
$3,795
$4,640
7
Y
$6,130
$5,750
8
Overheads allocated and apportioned to Service Cost Centre X are re-apportioned on
the following basis: Production Cost Centre A 20%, Production Cost Centre B 45%,
Production Cost Centre C 35%.
Overheads allocated and apportioned to Service Cost Centre Y are re-apportioned on
the basis of the number of employees in the other cost centres.
Required:
Re-apportion the service cost centre overheads.
Calculate an overhead absorption rate for each production cost centre.
8
of 9
Transcribed Image Text:18. Production overheads allocated and apportioned to cost centres in a factory for a period, along with additional data, are: Allocated overheads Apportioned overheads Additional data: Number of employees Direct labour hours Machine hours Production Cost Centre - B A $17,628 $38,490- $29,938 $45,841 (a) (b) 14 5,200 1,400 21 2,170 7,460 C $14,671 $28,360 14 4,780 580 Page Service Cost Centre X $3,795 $4,640 7 Y $6,130 $5,750 8 Overheads allocated and apportioned to Service Cost Centre X are re-apportioned on the following basis: Production Cost Centre A 20%, Production Cost Centre B 45%, Production Cost Centre C 35%. Overheads allocated and apportioned to Service Cost Centre Y are re-apportioned on the basis of the number of employees in the other cost centres. Required: Re-apportion the service cost centre overheads. Calculate an overhead absorption rate for each production cost centre. 8 of 9
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