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the management accountant of gympie has already allocated and apportioned the fixed overheads for the periods although she has yet to re-apportioned the service centre costs
information for the period is as fellow
production deparment service department total
1 2 store maintenance 65000$
allocated and apportioned 17500$ 32750$ 6300$ 8450$
work done by
store 60% 40%maintenance 75% 20% 5%
the step down method is used to re-apportion service centre cost.
the total overheads included in production department 1 will be $…….?I’m only doing the reapportionment part here. You should be able to do the rest.
Reapportionment of Maintenance Overheads:
Total = 8450
To PD1 = 8450*75% = 6338
To PD2 = 8450*20% = 1690
To Stores = 8450*5% = 422Reapportionment of Stores Overheads:
Total = 6300+422 = 6722
To PD1 = 6722*60% = 4033
To PD2 = 6722*40% = 2689
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