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Kindly Help me sir , i am getting $62,000
Adding all the Staff = 250. dividing S ( 25000/250 ) =100*120= 12000+50,000 = 62,000
Where i am doing a mistake ?A factory consists of two production cost centres – P and Q – and a canteen S.
The total allocated and apportioned overhead for each is as follows:
P= $50,000
Q= 62,000
S= 25000The canteen overhead is to be reapportioned to the production centres on the basis of the number of staff employed.
The number of staff in each centre is as follows:
p=120
Q=80
S=50After the reapportionment of the canteen costs, what is the total overhead for production centre P?
You are recharging the canteen (S) to the production centres P and Q.
In total there are 200 staff in the production centres and so the cost of S will be apportioned 120/200 to P and 80/200 to Q.
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