16.The following information is available for the two production departments (machining and assembly) and one service department (the canteen) at a manufacturing company. Machining Assembly Canteen Budgeted overheads £25,000 £20,000 £11,000 Number of staff 30 20 5 After reapportionment of the service cost centre costs, what will be the overhead cost of the assembly department cost centre? a) £25,500 b) £24,400 c) £24,00

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
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Problem 2EB: Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine...
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16.The following information is available for the two production departments (machining and assembly) and one service department (the canteen) at a manufacturing company.
Machining Assembly Canteen Budgeted overheads £25,000 £20,000 £11,000
Number of staff 30 20 5
After reapportionment of the service cost centre costs, what will be the overhead cost of the assembly department cost centre?
a) £25,500 b) £24,400 c) £24,000 d) £4,400

 

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