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.