You are provided with the following information about Birkam plc, which has a departmental structure: Total...

  

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You are provided with the following information about Birkam plc, which has a departmental structure: Total overheads (in £000) Employee numbers Floor area (sqm) Value of machinery (in £m) Direct labour hours Assembly Finishing Maintenance 475 575 350 100 80 20 10,000 15 200,000 10,000 5 100,000 1,000 2 Total 1,400 200 21,000 22 300,000 What proportion of the maintenance department's overheads should the finishing department absorb, assuming that overhead costs are apportioned to product cost centres using the most logical basis? You are provided with the following information about Birkam plc, which has a departmental structure: Total overheads (in £000) Employee numbers Floor area (sqm) Value of machinery (in £m) Direct labour hours Assembly Finishing Maintenance 475 575 350 100 80 20 10,000 15 200,000 10,000 5 100,000 1,000 2 Total 1,400 200 21,000 22 300,000 What proportion of the maintenance department's overheads should the finishing department absorb, assuming that overhead costs are apportioned to product cost centres using the most logical basis?

Answer rating: 100% (QA)

ANSWER To determine the proportion of the maintenance departments overheads t... View the full answer