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Prod 1 Prod 2 Stores dept Maintenance dept Overhead costs $ 24,00016,00010,0008,000 Cost of material...

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Accounting

Prod 1 Prod 2 Stores dept Maintenance dept Overhead costs $ 24,00016,00010,0008,000 Cost of material requisitions 40,00035,000-15,000 Mnance hours needed (hrs)8,0004,5001,500 Required: a) Use the repeated distribution method to apportion the overhead costs of the two service centres b) Ascertain the total overhead costs of the production departments c) Compare the overall cost of the production departments using the repeated distribution method and the traditional overhead absorption method. d) Comment on the benefits or drawbacks of using the repeated distribution method of overhead absorption

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