A company reapportions the costs incurred by its two service centres D and E to its three production centres A, B and C. The following are the overhead costs, which have been allocated and apportioned to the five cost center’s:
|
Rs |
|
|
Machining |
4,00,000 |
|
Finishing |
2,00,000 |
|
Assembling |
1,00,000 |
|
Material handling |
1,00,000 |
|
Inspection |
50,000 |
Estimates of the benefits received by each cost center are as follows:
|
A(%) |
B(%) |
C(%) |
D(%) |
E(%) |
|
|
Material handling |
30 |
25 |
35 |
10 |
|
|
Inspection |
20 |
30 |
45 |
5 |
You are required to calculate the charge for overhead to each of the three production cost centres, including the amounts reapportioned from the two service centres using the continuous allotment or repeated distribution method.