a company has three production departments and two service departments and for a per 559060

A company has three production departments and two service departments, and for a period the departmental distribution summary has the following totals:

Rs

Production departments:

A—Rs 1,600; B—Rs 1,400; C—Rs 1,000

4,000

Service departments:

P—Rs 702; Q—Rs 900

1,602

5,602

The expenses of service departments are charged on a percentage basis as follows:

A

B

C

P

Q

Service department

P

20%

40%

30%

10%

Service department

Q

40%

20%

20%

20%

Prepare a statement showing the apportionment of the expenses of the two service departments to production departments by the simultaneous equations method.

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