The management accountant of Sutton Heath Engineering plc is currently apportioning production machinery overheads amongst the company's various cost centres. During 20X4 the cutting department made 22 service engineer call outs, out of the total of 43 for the factory as a whole.The total cost of all such call outs was £72 600.Factory machinery depreciation in total was £243 740.The cutting department's machinery at carrying amount constitutes 37% of the total.
Service costs are apportioned on the basis of numbers of call outs, and machinery depreciation is apportioned on the basis of carrying amount.
What is the total of production machinery overheads to be apportioned to the cutting department (to the nearest £) ?
A) £117 046
B) £114 756
C) £127 328
D) £161 848
Correct Answer:
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