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