UK Apportioned Costs

[SSB]

This may sound like a very stupid question, but I have been working my way through the Kaplan (2013) C01 Study text and are a little bit baffled by something I have come across. Any suggestions or explanations welcome-

On p76 a formula is provided for apportioned costs which is:

Total Overhead Cost/Total value of Cost Apportionment base x Value of apportionment base of the cost centre being
calculated

We are told that the total overhead cost we are working with is the depreciation apportioned to the machining cost centre and is $16,700 and Value of apportionment base of the cost centre being calculated is $1,400 000

The total value of apportionment is said to be $1,670,000. How are these figures worked out? I have looked through the example and cannot get to this total. Please could someone tell me how this figure is worked out?

A breakdown or explanation would be greatly appreciated

 

[AJR21]

Hi mate,
I have just completed C01 today.

The overhead cost is £16700
The value of the apportionment basis is £1,670,000 which is the value of the machinery for the depreciation; make sure you take into account the extra zeros in the brackets!
The value of machinery for machining is £14k

Therefore

Total overhead cost (16700) divided by total value of machinery (values on p74) * value of machinery in the cost centre

Hope this helps.