1 Administrative/HR 25% 2 Information Systems 10% b Allocate service departments on a ranking of the total monetary amount in the service departments. 1 Information Systems €2,400,000 2 Administrative/HR €600,000 c Allocate service departments on a ranking of the euro amounts of service provided to other service departments 1 Information Systems (0.10 × €2,400,000) = €240,000 2 Administrative/HR (0.25 × €600,000) = €150,000 5.19 Manufacturing cost allocation, use of a conversion cost pool category, automation. (20–30 min) 1 Total manufacturing overhead cost pool = €270,000 Total direct manufacturing labour-hours = 1,500 hours Manufacturing overhead rate (€270,000 ÷ 1,500) = €180 per hour Costs per instrument
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