Dear Sir, using the Direct method, are the service centers’ costs apportioned to the production centres only while using the step method the service cost centers’ costs reapportioned to the production centers and to each other and that is when the algebraic or serial repeated reapportionment necessary ?
Hi, may I ask why you ignore cents in the working? Will I be reprimanded in the exam for including it as it’s sort of stuck in my head by my old teachers to always use cents when calculating monetary figures.
Hi John, I have the same question as above. With the free lecture notes it goes straight from Example 5 on pg 31, to Example 6 on page 32. There is no example that I can see (nor any question on the Test Questions available online) that match the question you refer to…..albeit I can still follow the workings.
How can it be 27,283 when 70,000 had already been allocated directly to that department before reallocating the service departments? The answer in the lecture is correct.
sorry i wrote 7,000 instead of 70,000. My mistake! i looked at it like 3 times and didnt spot it. silly me. Thank you for the prompt response Jhon! your amazing!
twter31 says
Hello sir
i’m very thank you to teach me so useful..
when you see 6:33 in video, recharging maintenance about stores is 85
but when i calculated this 85.5 so 86..
it that right?
John Moffat says
85.5 rounds to either 85 or to 86 – it does not matter (and it does not matter in the
exam 馃檪 )
shari89 says
Using the Algebraic method, at the end you use 50% and 30% / 45% + 40%. Where do the respective pending 20% and 15% go?
John Moffat says
They don’t 馃檪
Put in an extra column and put the 20% and 15% into that column and you will find that they disappear.
amicus1231 says
sir i just want to thanks for this great lecture it really gave me a real solid and concrete idea of the whole lecture
John Moffat says
Thank you for your comment 馃檪
loukasierides says
Dear Sir, using the Direct method, are the service centers’ costs apportioned to the production centres only while using the step method the service cost centers’ costs reapportioned to the production centers and to each other and that is when the algebraic or serial repeated reapportionment necessary ?
John Moffat says
Correct.
loukasierides says
Thank you very much
John Moffat says
You are welcome 馃檪
ninicks says
Hello sir can you explain to me in a little bit of detail how you arrived at 0.975. I don’t quite understand.
Thanks in advance
John Moffat says
But I explain in the lecture (and of course in the printed answer in the lecture notes).
sxhawty says
sir in the last part of recharging the maintenance in example 6, why did you use 50% for product x?
John Moffat says
I do say in the lecture, that when it gets so small there is little point in carrying on precisely.
Do so if you want, but it will not change the final results.
kirit says
Morning John,
At 09:36 of the video lecture you refer to the test on Page 43- Question 1
I can’t find it in the lecture notes ?
Thanks
John Moffat says
Sorry – I need to amend the lecture because there used to be tests at the end of each chapter in the lecture notes, but now we have removed them.
Instead we have online practice tests for each chapter – they are linked from the main Paper F2 page.
kasionz says
Hi, may I ask why you ignore cents in the working? Will I be reprimanded in the exam for including it as it’s sort of stuck in my head by my old teachers to always use cents when calculating monetary figures.
John Moffat says
It depends on the question.
If they want cents then the question will say so.
Usually it will be wanted to the nearest dollar when calculating the total overheads,
(Although obviously, as I explain in the lecture, more likely it will be to the nearest cent if you are asked for the unit cost.)
jmoore99 says
Hi John,
Midway through this video you ask the students to attempt the test question? Where do you get these particular questions?
Many thanks for your great videos/lectures!
Jason
John Moffat says
In the free lecture notes – you need the lecture notes in order to follow the lectures (and the link for downloading them is above the lecture).
dougiemacd says
Hi John, I have the same question as above. With the free lecture notes it goes straight from Example 5 on pg 31, to Example 6 on page 32. There is no example that I can see (nor any question on the Test Questions available online) that match the question you refer to…..albeit I can still follow the workings.
John Moffat says
Sorry – the question no longer exists. I must re-record the lecture.
Dee says
Dear John,
Shouldnt the total of the Production department X be 27,283? and not 90,284? Thank you!
John Moffat says
How can it be 27,283 when 70,000 had already been allocated directly to that department before reallocating the service departments?
The answer in the lecture is correct.
Dee says
sorry i wrote 7,000 instead of 70,000. My mistake! i looked at it like 3 times and didnt spot it. silly me. Thank you for the prompt response Jhon! your amazing!
John Moffat says
You are welcome 馃檪