Question
The following particulars relate to Meenambigai manufacturing company which has three production departments A, B and C and two service departments X and Y total
The following particulars relate to Meenambigai
manufacturing company which has three production
departments A, B and C and two service departments X
and Y total departmental overheads as per primary
distribution.
Department A B C X Y
Expenses (Rs.) 6,300 7,400 2,800 4,500 2,000
The company decided to charge service department cost
on the basis of the following percentages.
Services
Departments
Production
departments
Services
departments
A B C X Y
X 40% 30% 20% - 10%
Y 30% 30% 20% 20% -
Find the total overheads of production departments
charging service departmental costs to production
department on the repeated distribution method.
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