* Scar Limited has two production departments and one service department. The following information relates to January 2006:

£

Allocated expenses:

Production department: A 65000 B 35000 Service department 50000 The allocated expenses shown above are all indirect expenses as far as individual units are concerned.

The benefit provided by the service department is shared amongst the production departments A and B in the proportion 60 : 40.

Required:

Calculate the amount of overhead to be charged to specific units for both production department A and production department B.