Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Reappointment
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- September 18, 2017 at 12:50 pm #407867
STL Co has two production departments (Processing and Packing) and two service departments (Maintenance and Canteen).
The following are budgeted production overhead costs for next period
Factory rent 20,000
Factory heat 5,000
Processing Dept – supervisor 15,000
Packing Dept – supervisor 10,000
Depreciation of equipment 7,000
Factory canteen expenses 18,000
Welfare costs of factory employees 5,000
Total 80,000
processing packing maintenance canteen
cubic space 50,000 m3 25,000 m3 20,000 m3 5,000 m3
nbv equipment $20000 $200000 $200000 $100000
no of employees 40 30 20 10
A suitable basis for sharing out the maintenance costs is the time spent servicing equipment. The amount of time spent by the maintenance department servicing equipment in both production departments was: –Processing 60%
Packing 40%The canteen department’s overheads are to be reapportioned on the number of employees in the other three departments.
Reapportion the costs incurred by the two service cost centres to the two production cost centres.
I cannot understand the reappointment part please
September 19, 2017 at 7:10 am #407918I work through this example in my free lectures on the apportionment of overheads – you cannot expect me to type out all my lectures here
The lectures are a complete free course for paper f2 and cover everything needed to be able to pass the exam well.
You should not be using the lecture notes without watching the lectures. If you are not watching the lectures for any reason then you need to buy a Study Text from one of the ACCA approved publishers, and study from there.
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