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Question 15: A company runs two production cost centres M1 and M2, and two service...

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Question 15: A company runs two production cost centres M1 and M2, and two service cost centres S1 and 52. The total allocated and apportioned overheads for each are as follows: M1 M2 S1 S2 30,000 35,000 10,000 15,000 it has been estimated that each service cost centre does work for other cost centres in the following proportions: M1 M2 S1 S2 % of service cost centre S1 to: 55% 45% - % of service cost centre S2 to: 40% 45% 15% Calculate the total overheads for production cost centre M1 after the reapportionment of service cost centre costs have been carried out

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