Human Resources (H.R.), Data Processing (D.P.), and Risk Management (R.M.) provide services to the Machining and Assembly production departments, and in some cases, the service departments also provide services to each other. The following information is provided: Service e Dept % of services provided by the service department listed at left to: H.R. D.P. R.M. Machining Assembly H.R. -- 20% 10% 40% 30% D.P. 8% -- 7% 30% 55% R.M. -- -- -- 50% 50% Total cost allocated Sh H.R. 80,000 D.P. 120,000 3 R.M. Machining Assembly 40,000 460,000 600,000 1,300,000 The amounts in the far left column are the costs incurred by each service department. Any services that a department provides to itself are ignored, so the intersection of the row and column for each service department shows zero.

Required:

Apportion the production overhead costs of the service cost centers to the production cost centers using either the repeated distribution method or the algebraic method 

Answer rating: 100% (QA)

I have made the calculation using the Repeated Distribution Method ... View the full answer