In a factory with four production departments and two service departments, theoperating costs for the month of October w
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In a factory with four production departments and two service departments, theoperating costs for the month of October w
In a factory with four production departments and two servicedepartments, theoperating costs for the month of October were asshown below. R Production Department 1 700,000 ProductionDepartment 2 300,000 Production Department 3 400,000 Servicedepartments Canteen 78,000 Boiler house 100,000 1,578,000 The costsof running the canteen are apportioned to each department on thebasis ofthe estimated use of the canteen by employees in eachdepartment. The costs of the boiler house are apportioned on thebasis of the estimatedconsumption of power by each department. Theservice departments’ costs are therefore apportioned as follows:Canteen Boiler house % % Production Department 1 40 30 ProductionDepartment 2 20 30 Production Department 3 30 20 Servicedepartments Canteen - 20 Boiler house 10 - Required: Prepare astatement showing the allocation of costs to the productiondepartments.