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You have been asked to use the repeated distribution method to prepare the secondary allocation of the overheads of the two service departments ( X
You have been asked to use the repeated distribution method to prepare the secondary allocation of the overheads of the two service departments X and Y to the three production departments A B and C according to the following percentages:
Secondary allocation: A B C X Y
Percentage of service department X to
Percentage of service department Y to
The three production departments A B and C absorb overheads on machine hour basis.
Machine hours
Production department A
Production department B
Production department C
Complete the secondary allocation statement below where applicable, round of figures to two decimal places marks
Production departments Service departments
A B C X Y
Total primary allocation, R
Service department X
Service department Y
Total allocated overhead
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