JR Co. Ltd's budgeted overheads for the forthcoming period applicable to its production departments, are as follows:

The budgeted total costs for the forthcoming period for the service departments, are as follows:

The use made of each of the services has been estimated as follows:

Required:
Apportion the service department costs to production departments:
(i) Using the step-wise (elimination) method, starting with G;
(ii) Using the reciprocal (simultaneous equation) method;
(iii) Commenting briefly on your figures

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£000) 2 870 690 £000) 160 82 Production department Sevice department G (95) H (96) 60 50 2 30 30 10 20