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p-$95000 Q-$82000 service cost centres X-$46000 y-$30000 percentages of services=p40 Q 40 X- Y20 percentages of Y=p30 Q60 X10 Y-. my question is, why was $3000 from service cost centre Y not further reapportioned?
Without seeing the actual question, and what was required, I have absolutely no idea!
Tell me which question in which past exam, or which question in the current edition of the BPP Revision Kit, and then I will help you.
(BPP December 2011-2012 question 8.15) Factory consists of production centre p and q and service centre x and y. total allocation, apportioned overheads= p-$95000 Q-$82000 service cost centres X-$46000 y-$30000. each service cost centre does work for the other cost centres in the following proportions: percentages of service X=p40 Q 40 X– Y20 and percentages of service Y=p30 Q60 X10 Y–. After the reapportionment of service cost centres costs has been carried out using a method that fully recognises the reciprocal service arrangements in the factory, what is the total overhead for production cost centre p? $3000 from service cost centre Y was not reapportioned.
In the current edition of the Revision Kit. they have reapportioned the 30,000 from Y, but they have done it using the algebraic method (and I assume that the answer is the same as in your old copy of the Revision Kit).
If you prefer to use the step-by-step method (which will give exactly the same answer), then reapportion Y first. Some of it goes to X. Then reapportion the new total for X, and some of it goes to Y. Then reapportion the amount that went to Y, and keep going until the amounts get too small to bother.
Have you watched my free lectures on this, because I go through both methods of this reciprocal apportionment?
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