Illustration 4 - Reapportionment of service cost centre costs The total overheads allocated and apportioned to...

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Illustration 4 - Reapportionment of service cost centre costs The total overheads allocated and apportioned to the production and service departments of LS Ltd are as follows. Assembly = $17,350 Finishing = $23,970 Maintenance = $18,600 Canteen = $6,600 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 other three departments has been analysed as follows. Assembly 50% Finishing 40% Canteen 10% The Canteen department's overheads are to be reapportioned on the basis of the number of employees in the other three departments. Assembly Finishing | Maintenance Canteen Number of 20 employees 30 10 2 Complete the overhead analysis sheet below and reapportion the service departments' overheads to the production departments. Overhead Assembly $ Finishing Mainte- Canteen Total $ $ nance $ $ Total from above 20 30 10 2 Reapportion canteen Reapportion maintenance Reapportion canteen Reapportion maintenance Reapportion canteen Reapportion maintenance Total Illustration 4 - Reapportionment of service cost centre costs The total overheads allocated and apportioned to the production and service departments of LS Ltd are as follows. Assembly = $17,350 Finishing = $23,970 Maintenance = $18,600 Canteen = $6,600 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 other three departments has been analysed as follows. Assembly 50% Finishing 40% Canteen 10% The Canteen department's overheads are to be reapportioned on the basis of the number of employees in the other three departments. Assembly Finishing | Maintenance Canteen Number of 20 employees 30 10 2 Complete the overhead analysis sheet below and reapportion the service departments' overheads to the production departments. Overhead Assembly $ Finishing Mainte- Canteen Total $ $ nance $ $ Total from above 20 30 10 2 Reapportion canteen Reapportion maintenance Reapportion canteen Reapportion maintenance Reapportion canteen Reapportion maintenance Total

Answer rating: 100% (QA)

Original Overhead Allocations Assembly 17350 Finishing 23970 Maintenance 18600 Cante... View the full answer