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Apportionment.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Apportionment.

  • This topic has 1 reply, 2 voices, and was last updated 5 months ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 30, 2022 at 9:48 pm #647766
    sarbrina
    • Topics: 21
    • Replies: 48
    • ☆☆

    Hi Mr. John. Can you please explain how to solve this question. I have been struggling with this question.

    A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The
    total allocated and apportioned overhead for each is as follows:
    P Q X Y
    $95,000 $82,000 $46,000 $30,000
    It has been estimated that each service cost centre does work for the other cost centres in the following
    proportions:
    P Q X Y
    Percentage of service cost centre X to 40 40 – 20
    Percentage of service cost centre Y to 30 60 10 –
    After the reapportionment of service cost centre costs has been carried out using a method that fully
    recognises the reciprocal service arrangements in the factory, what is the total overhead for production
    cost centre P?

    January 31, 2022 at 7:43 am #647780
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49621
    • ☆☆☆☆☆

    X and Y are service departments and need reapportioning to the production centres P and Q.

    You can either use the step-down method of the algebraic method (both give the same answer) and I explain how to do both methods in my free lectures on overheads.

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