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QUESTION 14 Kuma Ltd's budgeted overheads for the forthcoming period applicable to its production department are as follows: Departments Budgeted overheads (GH) Assembling 870,000 Finishing

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QUESTION 14 Kuma Ltd's budgeted overheads for the forthcoming period applicable to its production department are as follows: Departments Budgeted overheads (GH) Assembling 870,000 Finishing 690,000 The budgeted overheads costs for the forthcoming period for the service departments are as follows: Departments Budgeted overheads (GH) Stores 160,000 Maintenance 82,000 The services departments render services to various departments as follows: Department Assembling Finishing Stores Stores 60% 30% Maintenance 10% Maintenance 50% 30% 20% Required: (a) Apportion the service department costs to production departments using: (i) Repeated distribution method (ii) Simultaneous equations method (b) Comment briefly on your figures in (a) above

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