c) Having carried out the allocation and apportionment process of its operations, the management accountant of Flowers Ltd is left with the reapportionments to carry out. The data below represent the current state of the overhead distribution summary and the additional detail that is needed to answer the question that follows. Flower Ltd overhead distribution summary Production department M Total b/d T Amount in Amount in Kes Kes 25,000 20,000 Reapportionment percentages A (%) B (%) Production department M 30 20 T 20 25 F Amount in Kes 30,000 F 25 30 i. The repeated distribution method ii. Algebraic method Service department A Amount in Kes 10,000 B Amount in Kes 20,000 Service department A 25 B 25 Required a) Reapportion the service department overheads into the production departments on the basis of each of the following:
c) Having carried out the allocation and apportionment process of its operations, the management accountant of Flowers Ltd is left with the reapportionments to carry out. The data below represent the current state of the overhead distribution summary and the additional detail that is needed to answer the question that follows. Flower Ltd overhead distribution summary Production department M Total b/d T Amount in Amount in Kes Kes 25,000 20,000 Reapportionment percentages A (%) B (%) Production department M 30 20 T 20 25 F Amount in Kes 30,000 F 25 30 i. The repeated distribution method ii. Algebraic method Service department A Amount in Kes 10,000 B Amount in Kes 20,000 Service department A 25 B 25 Required a) Reapportion the service department overheads into the production departments on the basis of each of the following:
Chapter5: Process Costing
Section: Chapter Questions
Problem 13PB: Selected information from Hernandez Corporation shows the following: Prepare journal entries to...
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