Question: Barclay Ltd has the following data: Prod 1 Prod 2 Stores dept Maintenance dept Overhead costs $ 15,000 14,897 12,000 10,000 Cost of material requisitions

Barclay Ltd has the following data:

Prod 1 Prod 2 Stores dept Maintenance dept
Overhead costs $ 15,000 14,897 12,000 10,000
Cost of material requisitions 45,000 40,000 - 15,000
M'nance hours needed (hrs) 6,000 2,500 1,500

Required:

A. Use the repeated distribution method to apportion the overhead costs of the two service centres

B. Ascertain the total overhead costs of the production departments

Prod 1 Prod 2 Stores dept Maintenance dept
Overhead costs
Apportion stores
Apportion maintenance
Repeat: stores
Repeat: maintenance
Repeat: stores
Repeat: maintenance
Total

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