Hello María,
The rates you found for Preparation and Assembly are not exactly those, I'm going to explain what you should do here. Although it is not mentioned in the exercise, you should you the simultaneous equation method to allocate the costs from the service cost centres to the production cost centres.
Maintenance = 4 000 + 20% Cleaning
Cleaning = 4 000 + 20% Maintenance
By solving the equation system, you would find that M = 5 000 and C = 5 000. Then, by reallocating from service cost centres do production cost centres, you would get:
Preparation = 35 000 + 1 000 (Maint.) + 2 000 (Cleaning) + 4 250 (Quality Control) = 42 250
Assembly = 50 000 + 2 000 (Maint.) + 1 500 (Cleaning) + 4 250 (Quality Control) = 57 750
In both, you need to consider that there is some reallocation of costs from Maintenance and Cleaning to the Quality Control department. In the end, your rates will be 211,25€/Mh and 38,5€/Lh, respectively.
What you did afterwards is correct, you only need to use these different overhead rates and you will get to the right result.
Good study!
The rates you found for Preparation and Assembly are not exactly those, I'm going to explain what you should do here. Although it is not mentioned in the exercise, you should you the simultaneous equation method to allocate the costs from the service cost centres to the production cost centres.
Maintenance = 4 000 + 20% Cleaning
Cleaning = 4 000 + 20% Maintenance
By solving the equation system, you would find that M = 5 000 and C = 5 000. Then, by reallocating from service cost centres do production cost centres, you would get:
Preparation = 35 000 + 1 000 (Maint.) + 2 000 (Cleaning) + 4 250 (Quality Control) = 42 250
Assembly = 50 000 + 2 000 (Maint.) + 1 500 (Cleaning) + 4 250 (Quality Control) = 57 750
In both, you need to consider that there is some reallocation of costs from Maintenance and Cleaning to the Quality Control department. In the end, your rates will be 211,25€/Mh and 38,5€/Lh, respectively.
What you did afterwards is correct, you only need to use these different overhead rates and you will get to the right result.
Good study!