A firm supplied the following information: Budgeted overhead costs (service cost centre): Maintenance of buildings N$45 000 Budgeted factory overheads (production cost centres): Machining N$176 000 Assembling N$205 000 Budgeted direct labour hours Area (m2) Maintenance 1 000 Machining 2 000 2 600 Assembling 10 000 1 400 Total 12 000 5 000 Management has decided to use the area as basis to apportion the cost of the service cost centre between the production cost centres It has further decided to use the direct labour hours as basis to compute the overhead rates of the production cost centres. Determine amount of maintenance costs to be apportioned to the assembling department
A firm supplied the following information: Budgeted overhead costs (service cost centre): Maintenance of buildings N$45 000 Budgeted factory overheads (production cost centres): Machining N$176 000 Assembling N$205 000 Budgeted direct labour hours Area (m2) Maintenance 1 000 Machining 2 000 2 600 Assembling 10 000 1 400 Total 12 000 5 000 Management has decided to use the area as basis to apportion the cost of the service cost centre between the production cost centres It has further decided to use the direct labour hours as basis to compute the overhead rates of the production cost centres. Determine amount of maintenance costs to be apportioned to the assembling department
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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