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Hi
I need help with reallocation. There is a question on page 7 F5 Study text (more cost apportionment). I am not sure how they came up with the reallocation figures i.e $7600, $5890, $1970, $(33520) and also the mach usage reallocation figures.
ThanksI 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.
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.
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