Fixed overheads- traditional method

Question 1

What is the method for calculating where to apportion fixed overheads across the different hostels?

Answer 1

1. Calculate the total no of hostel rooms (140)
2. Apportion insurance costs by calculating. (hostel number of rooms/ total rooms x insurance costs) for each hostel

Question 2

How do you apportion insurance costs?

Answer 2

hostels number of rooms/ total rooms x total insurance cost (do this for each hostel)

Question 3

How do you apportion HR costs?

Answer 3

total cost/ number of employees x amount of employees at a given hostel