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Problem 2 ; for method of direct redistribution ABC Ltd has three production departments and four service departments. Per Primary distribution the expenses were:

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Problem 2 ; for method of direct redistribution ABC Ltd has three production departments and four service departments. Per Primary distribution the expenses were: Production Dept A B Rs. Rs. 15000 13000 12000 40000 Service departments Stores 2000 Time keeping & accounts 1500 Power 800 canteen 500 Total The following information is also available: HP of machines No of workers 4800 44800 Dept A B C 300 300 200 20 15 15 2500 1500 1000 Value of stores requisitioned Apportion the costs of the service departments to the production departments

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