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.