Question

Kalahari (Pty) Ltd has three production departments namely P1, P2, and P3, and two service departments namely S1 and S2 departments. Time left 0:30:22 The following extract of information is available concerning the five departments. Overhead costs: P1 P2 P3 S1 S2 R 1 050 000 437 500 262 500 180 000 144 000 2 074 000 The S1 department provides service to all departments. An analysis of both service departments indicates that costs should be allocated as follows: P1 P2 P3 S1 S2 S1 45% 30% 15% - 10% S2 35% 50% 15% - - Required: Complete the following schedule for apportioning the service department costs to the production departments, by choosing the correct answer from the options provided, using the step method. P1 P2 P3 S1 Primary allocation Secondary allocation: S1 S2 Total overhead +

          Kalahari (Pty) Ltd has three production departments namely P1, P2, and P3, and two
service departments namely S1 and S2 departments.
Time left 0:30:22
The following extract of information is available concerning the five departments.
Overhead costs:
P1
P2
P3
S1
S2
R
1 050 000
437 500
262 500
180 000
144 000
2 074 000
The S1 department provides service to all departments. An analysis of both service
departments indicates that costs should be allocated as follows:
P1
P2
P3
S1
S2
S1
45%
30%
15%
-
10%
S2
35%
50%
15%
-
-
Required:
Complete the following schedule for apportioning the service department costs to the
production departments, by choosing the correct answer from the options provided, using
the step method.
P1
P2
P3
S1
Primary
allocation
Secondary
allocation:
S1
S2
Total
overhead
+

Kalahari (Pty) Ltd has three production departments namely P1, P2, and P3, and two
service departments namely S1 and S2 departments.
Time left 0:30:22
The following extract of information is available concerning the five departments.
Overhead costs:
P1
P2
P3
S1
S2
R
1 050 000
437 500
262 500
180 000
144 000
2 074 000
The S1 department provides service to all departments. An analysis of both service
departments indicates that costs should be allocated as follows:
P1
P2
P3
S1
S2
S1
45%
30%
15%
-
10%
S2
35%
50%
15%
-
-
Required:
Complete the following schedule for apportioning the service department costs to the
production departments, by choosing the correct answer from the options provided, using
the step method.
P1
P2
P3
S1
Primary
allocation
Secondary
allocation:
S1
S2
Total
overhead
+

Added by Carmen N.

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