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