XL LLC has three production departments and four service departments. The expenses for these departments are as follows:
Production Departments
Amount (RO)
A
3,000,000
B
2,600,000
C
2,400,000
Total Amount
8,000,000
Service Departments
Stores
400,000
Time keeping & accounts
300,000
Power
160,000
Canteen
100,000
960,000
The following information is also available in respect of the production departments:
Particulars
Department A
Department B
Department C
Horse power of machine
300
200
Number of workers
20
15
Value of stores requisition (RO)
250,000
150,000
Apportion the cost of service department over the production departments.
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