BizHub Limited has two (2) production departments: Assembly and Finishing; and one service department: Repairs....

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Accounting

BizHub Limited has two (2) production departments: Assembly and Finishing; and one service department: Repairs. The overheads of each production department comprise directly allocated expenses and a share of the overheads of the repairs department re-apportioned based on floor space. The floor space of the three (3) departments is 475, 285 and 190 square metres (m) for Assembly, Finishing and Repairs, respectively. The following incomplete production-related information is available concerning the apportionment: Production Service departme Departments Assembly Finishing Budgeted allocated expenses (primary allocation) R960 250 R925 750 Budgeted service department ? ? apportionment (secondary allocation) The total budgeted overhead costs allocated to the Finishing department amount Repairs R595 000

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