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QUESTION TWO The summary of overheads for the three production departments and two service departments of a company have been provided below. Department A B
QUESTION TWO
- The summary of overheads for the three production departments and two service departments of a company have been provided below.
Department | A | B | C | S1 | S2 |
Overheads (GH) | 20,000 | 15,000 | 25,000 | 18,000 | 12,000 |
The service departmental costs are apportioned as follows | |||||
| A | B | C | S1 | S2 |
S1 | 25% | 30% | 35% | - | 10% |
S2 | 30% | 30% | 25% | 15% | - |
Required:
Apportion the service center costs and determine the total production departments overheads after the apportionment.
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