Page 149 - F2 - MA Integrated Workbook STUDENT 2018-19

Accounting for overheads

The Stores and Maintenance departments are production service departments.
An analysis of the services they provide indicates that their costs should be
apportioned as follows:

Machining Assembly Finishing Stores Maintenance

Stores 40% 30% 20% – 10%

Maintenance 55% 20% 20% 5% –

After the apportionment of the service department costs, the total overheads of
the production departments will be (to the nearest $500)

$

Machining

Assembly

Finishing

Illustrations and further practice

Now try TYU questions 1 and 2 from Chapter 7

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