A manufacturing company has 2 production departments X and Y and 3 service departments Time keeping, Stores
Question:
A manufacturing company has 2 production departments X and Y and 3 service departments Time keeping, Stores and Maintenance. The departmental summary showed the following expenses for October 2001.
You are required to make departmental allocation of expenses.
Transcribed Image Text:
Production Departments: X Y Service Departments: Time-keeping Stores Maintenance The other information are: Particulars No. of employees No. of stores requisitions Machine-hours Production departments X 40 24 2,400 Y 30 20 16,000 Rs. 16,000 10,000 4,000 5,000 3,000 Time-keeping 20 Rs. 26,000 12,000 38,000 Service departments Stores 16 Maintenance 10 6
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To allocate the expenses of the service departments Timekeeping Stores and Maintenance to the production departments X and Y we can use the stepdown s...View the full answer
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