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Hello
Could you please help me with that question:
A company has 2 production centres and two service centres. Overheads allocation and apportionment is a follows for a period:
PC1. PC2. SC1. SC2
Overheads. $460,200. $520,800. $122,000. $96,600
Reapportionment of SC1. 35%. 45%. 20%
Reapportionment of SC2. 30%. 70%What are the total overheads in PC2 after reappointment of the service costs enter overheads?
Thank you in advance
There must be an answer to this question in the same book that you found the question. Kindly refer to that answer and then ask whatever is in the answer that you don’t understand.
20% from sc1 to sc2= 122000×20%=24400
So sc2 = 96600+24400=12100035% from sc1 to pc1 (122000×35%=42700) and 30% from sc2 to pc1 (121000×30%=36300)
45% from sc1 to pc2 (122000×45%=54900) and 70% from sc2 to pc2 (121000×70%=84700)
So pc2= 54900+84700=139600
@namah1 said:
20% from sc1 to sc2= 122000×20%=24400
So sc2 = 96600+24400=12100035% from sc1 to pc1 (122000×35%=42700) and 30% from sc2 to pc1 (121000×30%=36300)
45% from sc1 to pc2 (122000×45%=54900) and 70% from sc2 to pc2 (121000×70%=84700)
So pc2= 54900+84700=139600
The question asks for Total overheads of PC2 after reapportionment. Shouldn’t the answer be this one:
$520,800+$122,000*45%+$121,000*70% = $660,400
@secondstar said:
The question asks for Total overheads of PC2 after reapportionment. Shouldn’t the answer be this one:$520,800+$122,000*45%+$121,000*70% = $660,400
True, I forgot to add 520800
It should’ve been 520800+ 54900+84700=660400 thank you! ?
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