Exhibit 1: The following information is available in respect of overhead costs by Getwell Ltd Making, Finishing, Packing Maintenance Power Admin. Selling Distribution Allocated Overheads Indirect materials 1500 1000 2400 4800 3300 1000 1200 1600 Indirect labour 10000 1200 900 14000 4400 2000 800 5600 Other expenses 15000 8000 3000 1500 12400 24000 6600 4000 Depreciation 8000 800 1200 2000 4800 1500 2300 1800 Unallocated overheads Rates 18000 Net vending machine cost 2300 Heat and light 4000 Other statistics Occupancy sq. m 600 400 500 50 100 200 50 100 Number of employees 20 40 50 20 10 60 15 5 Power estimate (Kwh) 15000 2500 2500 2000 1500 500 1000 Maintenance (hours) 2000 200 400 1000 250 400 750 You are required to calculate the final distribution of overheads to cost centers including the reapportionment of maintenance and power generation service costs to user cost centers where a) The reciprocal nature of maintenance and power generation center is ignored. b) The elimination method is used whereby the costs of each service center are apportioned inturn between users but once they have been apportioned they are eliminated from any subsequent apportionment c) The repeated distribution method is used taking into account the reciprocal nature of the service costs d) An algebraic approach is used as an alternative to the repeated distribution method.

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