Apportionment

Hi John sir, plz have a look on the following question. A factory has three production departments and two service departments. P1,P2 and P3 are production departments and S1 and S2 are the service departments. Following are the budgeted overheads for each department. $ P1 1200,000 P2 2000,000 P3 2250,000 S2 600,000 S2 700,000 Actual overheads of each production department are as follow after re-apportionment of overheads from sevice departments. P1 1608,000 P2 2497,000 P3 2194,000 Budgeted and actual overheads from service departments are reapportioned on base of following: P1 Machine hours basis P2 labour hours basis P3 75% of material cost Other information: Budgeted data is as follow: P1 60,000 machine hours P2 200,000 labour hours P3 $3000,000material cost Actual data is as follow: P1 60,500 machine hours P2 190,000 labour hours P3 $3200,000 Services provided by S1: 20% to P1, 30% to P2, 40% to P3 and 10% to S2. Sevices provided by S2: 30% to P1, 40% to P2, 20% to P3, 10% to S1. Req: calculate depatment wise under/over absorbed overheads. Solution for P1 is given in the book is as follow. Absorbed FOH cost 1210,000 (1200,000/60,000*60500) Actual FOH cost 1608,000 Under absorbed by 398,000 But my question is as follow: Actual overheads for production departments are the after re-apportionment from service departments (1608,000) but why we are using budgeted original FOH cost(without re-apportionment from service deptts) to calculate absorption rate (1200,000/60,000)? As we have learnt that to calculate FOH absorption rate for a specific deptt we allocate,apportion and then re-apportion to collect budgeted cost for that specific deptt. Is the solution is wrong or something else. Plz help me.