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5 The following annual costs have been identified for Habib ltd Production department A Production department B Finishing departmet Service department 1 Service department 2
5 The following annual costs have been identified for Habib ltd Production department A Production department B Finishing departmet Service department 1 Service department 2 AZN'000 11000 9200 8600 8600 8400 Habib Ltd has established that the service departments work for other departments and the proportions as follow Service department 1 Production department B 30% 20% Production department A 40% 50% Finishing departmet 20% 20% Service department 2 10% Service department 1 Service department 2 10% Question Re-apprtionment method should be used in allocation of service cost centers and calculate the total overhead produciton cost in Cost centers A and B
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