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| 03 - Accounting & Taxes Accounting Help & Tax Strategies |
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#1
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Hi, i am really confused on how to calculate the total factory overhead of production departments using the repeated apportionment method.
How do we use the method when the question says--- Costs of service departments are apportioned on the basis of the following percentages Servise department X to A 50%, X to B 30%, Xto Y 20% Service department Y to A 40%, Y to B 50%, Y to X 10% Following figures of departmental costs are available after the primary distribution:- Department A Rs.15,750 Department B Rs.7,500 Department X Rs.11,750 Department Y Rs.5,000 I really need tips on solving this question.Any Hints ??? |
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#2
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Well... First I don't do homework and second I have no idea what "Rs." means. hmmm
Fact not pointed out in the problem: The total of all departments Rs.= 40,000. I can't explain how it works but the answer is A gets 55% of the total of X+Y (11750+5000=16750*55%=9212.50 or 9250 if unrounded %) and B gets 45% of the total of X+Y (16750*45%=7537.50 or 7500 if unrounded %). Therefore A=15750+9212.50=24962.50 and B=15037.50 and A+B=40,000. Rounding could result in A=15750+9250=25,000 Rounding could result in B= 7500+7500=15,000 Total............................................. .=40,000 It may have a theory of X's 20% going to Y with 10% coming from Y but 20% of the 10% goes back to Y etc. The end result is 5% of the total of X+Y's %gets added to A and B's percentage. Hope this give you a hint. ![]() |
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