# Accounting for overheads part c

1. says

If I start with Stores first , recharge Maintenance , will I reach the same answer ?

2. says

Hello Sir..
Thank you so much for teaching the repeated distribution method systematically..
I was so lost in class when my lecturer taught us.
Thanks once again

3. says

Hi
during reaportioning the service centres and rounding to the nearest dollar, what if your answer is different from the correct one in the multiple choice?
Thanks

• says

The choices of answers will be different by a big enough amount in the exam for it not to be a problem

4. says

Hi!
ok if the question mentioned the percentage of X first and then for Y, why do we calculate recharging for Y first??
Thanks

• says

It does not matter which one you recharge first – you will end up with the same final answer. (Try it yourself and you will see that I am correct )

5. says

sir in question 1 on depart. A how did you get that value of 9000 for service cost center Y
i kinda lost it nd cant figure it out :/

• says

Department Y is 30,000.

When we come to recharging, the little table in the question says that Y does 30% of its work for department A.

30% x \$30,000 = \$9,000.

6. says

Hi,

Can you please explain Question 4 on the test question,From CH7 not sure how you got 13 euro for ans

thank you

• says

Department X has total overheads of \$88000.

The total hours worked in dept X are (8000 x 3) + (8000 x 2.5) = 44000

So the overhead absorption rate is \$88000/44000 = \$2 per hour.

You can do the same for Dept Y and work out overheads per hour for Y.

To calculate the cost per unit for product M, it is 2.5 hours at the adept X rate, plus 2 hours at the Dept Y rate.

( incidentally, there are no euros in paper F2 – everything is in dollars )

7. says

Sir, at the last line ( recharge for M ) why did you take 50 % instead of 45 % for x ? and why did for y it remains the same ’45 %’ ?

8. says

Hi sir just wondering about question 1. Why have you reapportioned X again to get the figure 1500 to add to A?

• says

Sorry, but I am a bit puzzled which question you are referring to.
Do you mean question 1 of the test at the end of the chapter?
(If you do, then I don’t know where you get the 1500 from)

9. says

Great tutor! I wish I could be in that class! I hear a lot of Latvian names been mentioned in this class. Where is this based? I’m Latvian myself but study from home with BPP.

• says

Because we need to absorb the overheads over the production, but the service centre does not produce anything – it just does work for the productions centres that do produce units.

10. says

Hello teacher, i understood this chapter very clearly but when i opened the kaplan an bpp kits to solve them i found questions of under absorbed and over absorbed ovhds. There is no lecture on this topic?

11. says

these easy understanding lectures are saving my life! Thanks a lot!!.

I have a question around 5:35 at recharge canteen cost. Why dont we dived 50/100 and 40/100 instead of 50/90 and 40/90 since there are total 100 employees?

• says

You are absolutely right.He made a mistake the first time which he corrected later on in the lecture

• says

oh sorry i thought u were talking about the previous lecture. The reason that he didnt use 100employees is because 10 employees are of the canteen depaertment. He is recharging the total canteen costs to the production departments which have total of 90 employees.