Question:
A company reapportions the costs incurred by two service cost centres - materials handling and inspection - to three production cost centres - machining, finishing and assembly. The following are the overhead costs which have been allocated and apportioned to the five cost centres:
|
|
£000
|
|
Machining
|
400
|
|
Finishing
|
200
|
|
Assembly
|
100
|
|
Materials handling
|
100
|
|
Inspection
|
50
|
Estimates of the benefits received by each cost centre are as follows: