A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocated and apportioned overhead for each is as follows: P Y $95,000 $82,000 $46,000 $30,000 It has been estimated that each service cost centre does work for other cost centres in the following proportions: P Q X Y Percentage of service cost centre X to 50 50 Percentage of service cost centre Y to 30 60 10 The reapportionment of service cost centre costs to other cost centres fully reflects the above proportions. After the reapportionment of service cost centre costs has been carried out, what is the total overhead for production cost centre P?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total
allocated and apportioned overhead for each is as follows:
Y
$95,000
$82,000
$46,000
$30,000
It has been estimated that each service cost centre does work for other cost centres in the following
proportions:
Percentage of service cost centre X to
50
50
Percentage of service cost centre Y to
30
60
10
The reapportionment of service cost centre costs to other cost centres fully reflects the above proportions.
After the reapportionment of service cost centre costs has been carried out, what is the total overhead for
production cost centre P?
Transcribed Image Text:A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocated and apportioned overhead for each is as follows: Y $95,000 $82,000 $46,000 $30,000 It has been estimated that each service cost centre does work for other cost centres in the following proportions: Percentage of service cost centre X to 50 50 Percentage of service cost centre Y to 30 60 10 The reapportionment of service cost centre costs to other cost centres fully reflects the above proportions. After the reapportionment of service cost centre costs has been carried out, what is the total overhead for production cost centre P?
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