Prophet $$At Once, By Force$$ Ltd has Maintenance and Canteen Departments that support the four production departments $$ A$,$ B$,$ C$,$ and D$.$ Details of the total overheads for the first quarter of $2018$ accounting year are as follows;

Department A B C D Maintenance Canteen

GHS GHS GHS GHS GHS GHS

Overheads $620050004800650042003600$

Service departments$($Maintenance and Canteen$)$ overhead costs are shared based on the benefits received, in the percentages below;

Department A B C D Maintenance Canteen

GHS GHS GHS GHS GHS GHS

Maintenance $15\%25\%20\%30\%-10\%$

Canteen $20\%20\%35\%10\%15\%-$

Required:

a$)$ Calculate the total overhead cost to the production departments using

i$)$ Repeated distribution method

ii$)$ Algebraic method

Answer rating: 100% (QA)

Answer Maintenance Department Allocation Allocation to A 15 6200 930 Allocation to B 25 6200 1550 Al... View the full answer