JR Co. Ltd's budgeted overheads for the forthcoming period applicable to its production departments, are as follows:
Question:
The budgeted total costs for the forthcoming period for the service departments, are as follows:
The use made of each of the services has been estimated as follows:
Required:
Apportion the service department costs to production departments:
(i) Using the step-wise (elimination) method, starting with G;
(ii) Using the reciprocal (simultaneous equation) method;
(iii) Commenting briefly on your figures
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