question archive In a factory with four production departments and two service departments, the operating costs for the month of October were as shown below

In a factory with four production departments and two service departments, the operating costs for the month of October were as shown below

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In a factory with four production departments and two service departments, the operating costs for the month of October were as shown below.  The costs of running the canteen in apportioned to department on the basis of the estimated use of the canteen by the employees in each department. Similarly, the cost of the boiler house is apportioned on the basis of the estimated consumption of power used by each department.

 

Cost for October were:   Shs
Production department 1 200,000
  2 500,000
  3 300,000
  4 400,000
Service department    
Canteen   50,000
Boiler house   100,000
Total   1,550,000

 

The service departments are apportioned as follows:

    Canteen Boiler house
Production department   % %
  1 10 20
  2 30 10
  3 20 30
Service department             4 30 20
Canteen   - 20
Boiler house   10 -__
Total   100 100

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