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QUESTION 1 [13 MARKS] Magnolia Enterprises Limited (MEL), an engineering company,...

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Accounting

QUESTION 1
[13 MARKS]
Magnolia Enterprises Limited (MEL), an engineering company, has commenced the preparation of its fixed production overhead cost budget for next year. There are five cost centres of which three are involved in production and two are service cost centres. The following fixed production overhead costs have been apportioned:
\table[[Cost centre:,Machining,Assembly,Finishing,Stores,Maintenance],[Overhead costs,1200000,500000,300000,200000,160000]]
After an analysis of the services provided by the two service cost centres, the cost accountant at ME has concluded that their costs should be apportioned as follows:
\table[[,Machining,Assembly,Finishing,Stores,Maintenance],[Stores,40%,30%,20%,-,10%
Prepare a secondary overhead allocation/Re-apportionment statement, showing the total overheads of the production departments after the re-apportionment of the service department. also show final calculations. Also populate the calculations on the table and or in the format exspected.
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