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TR Limited estimated the following overheads for production and service departments. Department 1 Department 2 ('000) 1070 750 ('000) 160 Department G Department H 82

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TR Limited estimated the following overheads for production and service departments. Department 1 Department 2 ('000) 1070 750 ('000) 160 Department G Department H 82 The following percentages reflect the use made of the services. G 1 60% 50% G%) H (%) 2 30% 30% H H 10% 20% REQUIRED: a. Calculate the service department cost to production department using the following methods. 1. Specified order closing, starting with Department H. ii. Simultaneous equation method. b. Explain the difference in the results while use the two methods above

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