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Q. No. 4: Hammad Company has decided to distribute the costs of service department by the algebraic method. The producing departments are PDN-1 and PDN-2

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Q. No. 4: Hammad Company has decided to distribute the costs of service department by the algebraic method. The producing departments are PDN-1 and PDN-2 and service departments are SR-1 and SR-2. The monthly data are as follows: (7Marks) Actual Factory Overhead Service provided by Cost before distribution SR- 1 SR-2 Rs. In million PDN-1 84.0 40% 50% PDN-2 58.0 50% 30% SR-1 20.0 20% SR-2 17.6 10% Required: Compute the total factory Overhead of producing department PDN-1 and PDN-2 after distribution of service department costs

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