A company has three production departments, A, B and C and two service departments, P and Q. The… 1 answer below »

A company has three production departments, A, B and C and two service departments, P and Q. The following figures are available from the primary distribution summary.

Department

Dept A

Dept B

Dept C

Dept P

Dept Q

From Primary Distribution (Rs.)

3,150

3,700

1,400

2,250

1,000

The expenses of the service departments are to be apportioned on a percentage basis as follows.

Department

Dept A

Dept B

Dept C

Dept P

Dept Q

P (%)

40

30

20

10

Q (%)

30

30

20

20

Prepare Secondary Distribution Summary as per the Simultaneous Equations Method.

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