can anyone please help me with the below question regarding reapportion. The solution says "number of employess" is 4000, for department A and 8,000 for department B. I don't understand how you get those numbers. Can anyone explain?
thanks for your help.
A business has one service centre, the canteen, that serves two production centres. The overhead costs for a period have been allocated and apportioned between the three departments as given below:
Production A Production B Canteen
Overhead £10,000 £15,000 £12,000
Number of employess 100 200
Reapportion the canteen's overheads to the production departments on the basis of the number of employess.
SOLUTION:
Department A (£) Department B(£) Canteen(£)
Overhead 10,000 15,000 12,000
Number of employess 4,000 8,000 (12,000)
Total Overhead for prod. Dep. 14,000 23,000
prod. dep. = production department
-- Edited by mk10018 on Thursday 27th of October 2011 07:40:33 PM
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Normally in exam scenario's there will be a range of criteria and you will also need to choose the most appropriate apportionment basis. For example, floor space, number of employee's/students/patients, etc.
Which course is it that you're doing?
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Normally in exam scenario's there will be a range of criteria and you will also need to choose the most appropriate apportionment basis. For example, floor space, number of employee's/students/patients, etc.
Which course is it that you're doing?
i'm currently doing aat level 3, and the cost and revenues section is the chapter i'm having most difficulty with!
the problems that you are going through are suffered by a lot of people when they move from financial to management accountancy studies. Stick with it and it will all make sense soon.
If the book that you are using is not making sense it might be worth investing in a better book.
For costs and revenue's equivalent to AAT level 3 try the Kaplan study text for ACCA paper F2. (or the old 1.2 paper).
Have a look here at a version that you can look inside :
I always find that if you want to pass an exam learn to the next higher level which makes the stuff that you should be learning seem far, far simpler.
Which book is it that you are using for your studies?
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
thanks for the link, i'm actually using the kaplan book for costs and revenues (aat level 3). Apart from some errors, i think the book is pretty helpful. You're right about the move from financial to management. Financial accounting, which i like, so far hasn't given me any huge problems, but management seems a lot more daunting with all the equivalent units, overhead, abnormal losses and gains etc etc
I know what you mean about errors. I've been using the Kaplan text for ACCA paper P2 and keep finding myself disagreeing with the answers and occassionally the questions... Which I suppose is a good thing that we don't just take book examples at face value.
If your using the latest version of the book there should be a code in it that you can use to look at an electronic online version which also has updates for your text. For my book it ran to around 9 A4 pages!
For all the issues I've had though with worked examples and tests though I would not accept any substitute for the Kaplan texts.
Personally I've not liked the BPP texts since they changed (to my mind dumbed down) their format in 2007.
You will find that the AAT versions of study texts are cut down versions of the ACCA ones. Often you find the same or similar questions for both qualifications. But then if you think about it, we're all actually learning the same things just to different levels.
For AAT exam prep why not try out these two ACCA papers for paper F2 Management Accounting :
You might not be able to answer all of them as I'm sure that some elements will not be in the AAT syllabus. However, they're worth trying as practice prior to your exams and as the old saying goes, Anything that doesn't kill you makes you stronger. (Friedrich Nietzsche, Twilight of Idols, 1888).
Good luck when it comes to the exams,
All the best,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
