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Accounting for overheads:Reciprocal method

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Accounting for overheads:Reciprocal method

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 8, 2016 at 3:57 pm #304414
    ruwaida
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Plz help me with this question.

    A. B. X. Y
    Allocated overheads. 15. 20. 12. 5
    Service depts were used as follows:

    X hours worked
    A 5000. B. 4000. X. ? Y. 1000
    Number of y requisitions
    A. 3000. B1000. X ? Y ?

    Required:
    Apportion the service centre cost to the production centres using both two methods of reciprocal

    March 9, 2016 at 6:28 am #304611
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54726
    • ☆☆☆☆☆

    The question does not make sense because of the “?”‘s !!

    Also, in general, you cannot be asked in the exam do use ‘both methods of reciprocal’ – both would result in the same answer and it does not matter which way you use in the exam.

    Surely anyway you have an answer in the same book in which you found the question!!

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