Allocation Question

Which Study Text are you using?

bpp exams in 2011

I am sorry but I do not have the 2011 BPP Study Text :(

If you can write more from the question then I will try to help.

I think it is the same question in the 2012 book too on the same page.

They have reallocated canteen on the basis of labour hours (as it says in their answer).
So....in total there are 35,000 layout hours. 8,000 hours are in department A and so they have taken the fraction 8/35 * 33250 = 7600. (same idea for B and for assembly)

For maintenance they have reapportioned on the basis of machine hours (as it says in their answer)

So.....department A works 7,200 hours out of a total of 25,200 hours. Therefore they have apportioned 7200/25200 of the total maintenance cost to A.

oh was as simple as that. thanks so much!! :)

You are welcome.