Accounting · Management Accounting
An organisation has two production departments and two service departments. Information relating to these departments is shown in the following table: Production Dept 1Production Dept 2Service Dept 1Service Dept 2Overheads allocated/apportioned$80,000$40,000$20,000$30,000Usage of Service Dept 1 (%)4545-10Usage of Service Dept 2 (%)306010- The organisation uses the reciprocal method of reapportioning the overheads of service departments. What is the value of the total overheads reapportioned from service departments to Production Department 1?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$20,151✓
- 2$10,454
- 3$9,697
- 4$21,514
Correct answer
$20,151
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