Homework answers / question archive / A firm supplied the following information: Budgeted overhead costs (service cost centre): Maintenance of buildings N$45 000 Budgeted factory overheads (production cost centres): Machining N$176 000 Assembling N$205 000 Budgeted direct Area labour hours (m2) Maintenance 1 000 Machining 2 000 2600 Assembling 10 000 1400 Total 12 000 5000 Management has decided to use the area as basis to apportion the cost of the service cost centre between the production cost centres

A firm supplied the following information: Budgeted overhead costs (service cost centre): Maintenance of buildings N$45 000 Budgeted factory overheads (production cost centres): Machining N$176 000 Assembling N$205 000 Budgeted direct Area labour hours (m2) Maintenance 1 000 Machining 2 000 2600 Assembling 10 000 1400 Total 12 000 5000 Management has decided to use the area as basis to apportion the cost of the service cost centre between the production cost centres

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A firm supplied the following information: Budgeted overhead costs (service cost centre): Maintenance of buildings N$45 000 Budgeted factory overheads (production cost centres): Machining N$176 000 Assembling N$205 000 Budgeted direct Area labour hours (m2) Maintenance 1 000 Machining 2 000 2600 Assembling 10 000 1400 Total 12 000 5000 Management has decided to use the area as basis to apportion the cost of the service cost centre between the production cost centres. It has further decided to use the direct labour hours as basis to compute the overhead rates of the production cost centres. Determine amount of maintenance costs to be apportioned to the assembling department.