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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

  1. 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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