Problem:
A manufacturing company has three production departments and two service departments. The departmental expenses are as follows:
|
|
Production departments
|
Service departments
|
|
A(Rs)
|
B(Rs)
|
C(Rs)
|
X(Rs)
|
Z(Rs)
|
Total(Rs)
|
|
Expences
|
10000
|
8000
|
1200
|
2000
|
3000
|
3500
|
The service department expenses are charged on the following percentage basis:
|
Production departments
|
service departments
|
|
|
A
|
B
|
C
|
X
|
Z
|
|
X
|
25%
|
20%
|
30%
|
|
25%
|
|
Y
|
15%
|
30%
|
25%
|
30%
|
|
Prepare a statement showing the apportionment of overheads of the two service departments to the production departments.
Hint: The repeated distribution method is used in the absence of specific instruction