Question 3 XL Ltd., has three production departments and four service departments. The expenses for these departments

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Question 3

XL Ltd., has three production departments and four service departments. The expenses for these departments as per Primary Distribution Summary are as follows: Production Departments: (`) (`) A 30,00,000 B 26,00,000 C 24,00,000 80,00,000 Service Departments: (`) (`) Stores 4,00,000 Time-keeping and Accounts 3,00,000 Power 1,60,000 Canteen 1,00,000 9,60,000 The following information is also available in respect of the production departments: Dept. A Dept. B Dept. C Horse power of Machine 300 300 200 Number of workers 20 15 15 Value of stores requisition in (`) 2,50,000 1,50,000 1,00,000 PREPARE a statement apportioning the costs of service departments over the production departments