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?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8705e1cd-9ebb-4e01-b4e5-d4c2dd3a2562%2Fe6d98687-1ed9-4875-8083-3695b67b005b%2Fhhpxtig_processed.jpeg&w=3840&q=75)
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