Allocate and apportioned to the five cost centres, Accounting Basics

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Allocate and apportioned to the five cost centres

Question:

A company reapportions the costs incurred by two service cost centres - materials handling and inspection - to three production cost centres - machining, finishing and assembly. The following are the overhead costs which have been allocated and apportioned to the five cost centres:

	£000
Machining	400
Finishing	200
Assembly	100
Materials handling	100
Inspection	50

Estimates of the benefits received by each cost centre are as follows:

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Accounting Basics: Allocate and apportioned to the five cost centres

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Accounting Basics: Allocate and apportioned to the five cost centres

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