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b) Ngaka Ltd has three production departments and two service departments. The following is their budgeted factory overheads for the year ended 31st October 2020:
b) Ngaka Ltd has three production departments and two service departments. The following is their budgeted factory overheads for the year ended 31st October 2020: Shs. Shs. Production departments AAA 240,000 BAA 180,000 CAA 220,000 640,000 Service departments XXX 86,000 YYY 44,000 130,000 770,000 The service department costs are to be re-apportioned as per the following percentages: AAA BAA CAA XXX YYY XXX 20 30 35 15 YYY 30 30 30 10 Required: Re-apportion the service department costs to the production departments using the simultaneous equation method. marks)
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