Question

A company has three production departments and two service departments. Overheads distribution summary is as follows:
Production Departments :
A Rs. 13,600
B Rs. 14,700
C Rs. 12,800
Service Departments :
X Rs. 9,000 Y Rs. 3,000
The expenses of service departments are charged on a percentage basis as given below:
A B C X Y
Dept. X 40% 30% 20% – 10%
Dept. Y 30% 30% 20% 20% –
Apportion the cost of service departments by using the repeated distribution method.

Answer 1

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