An analysis of overhead costs is as follows:
|
Service departments: |
|
Stores—Rs 26,400 Costing—Rs 28,200 |
|
Production departments: |
|
A—Rs 27,000 |
|
B—Rs 24,000 |
Service rendered by the service department is
|
Stores |
Costing |
A |
B |
|
|
Stores |
15% |
55% |
30% |
|
|
Costing |
40% |
25% |
35% |
Prepare the overhead distribution summary under the simultaneous equations method.