A factory consists of two production cost centers (G and H) and two service cost centers (J and
K). The total overheads allocated and apportioned to each centre are as follows:
G H J K
Shs.40,000 Shs.50,000 Shs.30,000 Shs.18,000
The work done by the service cost centers can be represented as follows:
G H J K
Percentage of service cost centre J to 30% 70% – –
Percentage of service cost centre K to 50% 40% 10% –
The company apportions service cost centre costs to production cost centers using a method
that fully recognizes any work done by one service cost centre for another.
What are the total overheads for production cost centre G after the reapportionment of all service
cost centre costs?