Student Doubts Forum

Problem 13

Re: Problem 13

by Pedro Pinto da Silva Perdigão -
Number of replies: 0
Hello Maria!

So, you will want to solve the system in order to find the total amounts from the service cost centres - Power generator and General manufacturing overheads.

Let P represent Power Generator and GMO represent General manufacturing overheads.

P = 179.500€ + GMO × (179.500 / 1.652.000) - because GMO costs are allocated to the remaining manufacturing cost centres proportionately to their directly assigned manufacturing costs.

GMO = 154.000€ + P × (10.000 / 155.000) - because Power generator provides 10 000 Kw to GMO from a total of 155 000 Kw.

Hope this helps!

Pedro Perdigão