Mathematics · Cost Accounting - Direct Apportionment Method
HMF Co has two service centres serving two production departments. Overhead costs apportioned to each department are as follows: MixingStirringStoresCanteenAllocated and apportioned overheads$216,400$78,800$181,600$47,200Estimated work done by service centres:Stores50%30%-20%Canteen45%40%15%- The business uses the direct method of apportionment. After the apportionment of the service centres to the production departments, what will the total overhead cost be for the Mixing department?
- 1$325,968
- 2$344,784
- 3$351,416✓
- 4$354,888
Correct answer
$351,416
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