Furnishing manufacturing company total overheads allocated and apportioned to the production and service departments as follows: Assembly $55,000 Finishing 34,000 Maintenance 32,000 Canteen 15,600 A suitable basis for sharing out the maintenance costs is the time spent servicing equipment. The amount of time spent by the maintenance department servicing equipment in the Assembly and Finishing department has been analyses as follows: Assembly 60% Finishing 40% The Canteen department’s overheads are to be reapportioned on the basis of the number of employees in the other three departments. Number of employees: Assembly 20, finishing 35, Maintenance 15, Canteen 5. You are required to: reapportion the overhead expenses to the production from the service department.
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Furnishing manufacturing company total
Assembly $55,000
Finishing 34,000
Maintenance 32,000
Canteen 15,600
A suitable basis for sharing out the maintenance costs is the time spent servicing equipment. The amount of time spent by the maintenance department servicing equipment in the Assembly and Finishing department has been analyses as follows:
Assembly 60%
Finishing 40%
The Canteen department’s overheads are to be reapportioned on the basis of the number of employees in the other three departments.
Number of employees:
Assembly 20, finishing 35, Maintenance 15, Canteen 5.
You are required to: reapportion the overhead expenses to the production from the service department.
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