Question: Problem 2 ' for method of direct redistribution ABC Ltd has three production departments and four service departments. Per Primary distribution the expenses were: Production

 Problem 2 ' for method of direct redistribution ABC Ltd has

Problem 2 ' for method of direct redistribution ABC Ltd has three production departments and four service departments. Per Primary distribution the expenses were: Production Dept Rs. Rs. A B C 40000 Service departments Stores 2000 Time keeping 8; accounts 1500 Power 300 canteen 500 4800 Total 44800 The following information is also available: C HP of machines 200 No of workers 15 Value of stores requisitioned m 1000 Apportion the costs of the service departments to the production departments

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