Question
Question 5 (12 Marks) In a factory with four production departments and two service departments, theoperating costs for the month of October were as shown
Question 5 (12 Marks) In a factory with four production departments and two service departments, theoperating costs for the month of October were as shown below. R Production Department 1 700,000 Production Department 2 300,000 Production Department 3 400,000 Service departments Canteen 78,000 Boiler house 100,000 1,578,000 The costs of running the canteen are apportioned to each department on the basis ofthe estimated use of the canteen by employees in each department. The costs of the boiler house are apportioned on the basis of the estimatedconsumption of power by each department. The service departments' costs are therefore apportioned as follows: Canteen Boiler house % % Production Department 1 40 30 Production Department 2 20 30 Production Department 3 30 20 Service departments Canteen - 20 Boiler house 10 - Required: Prepare statement showing the allocation of costs to the production departments.
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