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FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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. Lead LLC has three production departments and four service departments. The expenses for these departments are as follows:

 

Production Departments

Amount (RO)

B121

5,000,000

C121

3,000,000

D121

2,000,000

Total Amount

10,000,000

 

Service Departments

Amount (RO)

Stores

200,000

Time keeping & accounts

100,000

Power

300,000

Canteen

400,000

Total Amount

1,000,000

The following information is also available in respect of the production departments:

                Particulars

Department A

Department B

Department C

Horse power of machine

200

100

300

Number of workers

10

8

7

Value of stores requisition (RO)

100,000

75,000

25,000

Apportion the cost of service department over the production departments.

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