Page 145 - F2 - MA Integrated Workbook STUDENT 2018-19
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Accounting for overheads
Reapportionment
Reapportionment – apportion the service cost centre total costs to the
production cost centres that make use of the service cost centre. This
process is known as reapportionment or secondary apportionment.
This is so all the production costs can be identified with a production cost
centre to enable the cost of the units that the production cost centre
produces to be calculated.
3.1 Direct method
Example 2
Direct method
In this method any reciprocal services are ignored. The following information
is available:
Assembly Finishing Maintenance Canteen Total
Number of staff 20 40 – – 60
% time spent by 60% 40% – – 100%
maintenance
Complete the table below (to the nearest $):
Basis Assembly Finishing Maintenance Canteen Total
Overhead B Fwd 16,500 26,250 6,675 10,575 60,000
Canteen Number 3,525 7,050 (10,575)
of staff
Maintenance % time 4,005 2,670 (6,675)
spent
Total 24,030 35,970 60,000
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