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Exercise Help

This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.

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June 20, 2021 at 3:47 pm #625930
Griffindor777
Member
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Sir, Im doing an exercise about allocate and apportion overheads to different departments.
Im trying to allocate the overhead cost of Electricity, gas and water. They provide the following allocation basis to apply: Floor area, Fixture cost and Number of emloyees. I dont know what the suitable basis for this OH cost is?
June 21, 2021 at 6:35 am #625959
John Moffat
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None of the allocation bases are really suitable, but if forced to choose then I would choose floor area.
Exam questions will either tell you what basis to use or will make it very clear (unlike the question you have typed).
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