a factory has three service departments l m and n and two production departments x a 559076

A factory has three service departments L, M and N and two production departments X and Y. The following are the expenses allocated and apportioned to the departments as per the primary distribution summary:

L

M

N

X

Y

Rs 100,00

Rs 8,000

Rs 12,000

Rs 30,000

Rs 40,000

The following additional information is also available on the basis of a detailed analysis:

Service departments

Production departments

L

M

N

X

Y

L’s service used

20%

30%

30%

20%

M’s service used

40%

30%

30%

NicSPIVICP 115Pd

60%

40%

X (Rs)

30,000

3,000

3,000

11,400

47,400

Y (Rs)

40,000

2,000

3,000

7,600

52,600

Total overhead (Rs)

1,00,000

1,00,000

Prepare a statement showing the apportionment of service department overheads under the step method.

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