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At Hand in Hand Ltd, an Engineering Company, a Management

Question 18

Multiple Choice

At Hand in Hand Ltd, an engineering company, a management accountant is currently apportioning production machinery overheads amongst the company's various cost centres. During 201X the machine department made 25 service engineer call outs, out of the total of 45 for the factory as a whole. The total cost of all such call outs was £92 600. Factory machinery depreciation in total was £243 740. The machine department's machinery at net book value 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 net book value. What is the total of production machinery overheads to be apportioned to the cutting department (to the nearest £) ?


A) £117 056
B) £141 628
C) £118 540
D) £134 980

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