(a) (b) Prepare an overhead analysis sheet, which clearly shows how the above costs would be apportioned to each department The canteen is a production-related cost because it is used to provide meals to the workforce. It is known as a service department. However, units being produced spend time only in the preparation and assembly departments. Therefore, to account for canteen costs they must be re-apportioned into the preparation and assembly departments (secondary apportionment). As a continuation of the overhead analysis sheet prepared in part (a), provide details of the reapportion of canteen costs into the preparation and assembly departments?

(a) (b) Prepare an overhead analysis sheet, which clearly shows how the above costs would be apportioned to each department The canteen is a production-related cost because it is used to provide meals to the workforce. It is known as a service department. However, units being produced spend time only in the preparation and assembly departments. Therefore, to account for canteen costs they must be re-apportioned into the preparation and assembly departments (secondary apportionment). As a continuation of the overhead analysis sheet prepared in part (a), provide details of the reapportion of canteen costs into the preparation and assembly departments?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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