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Allocate the costs of the service to production departments

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Reference no: EM132767900

Question - Below are cost information provided by Kilang Boom.

Service dept SH Service dept SQ Production dept PX Production dept PG

Costs RM200,000 RM300,000 RM100,000 RM400,000

Basis 1 40 25 25 75

Basis 2 400 200 100 300

Service Department SH is using Basis 1. Service Department SQ is using Basis 2. Using the above information, allocate the costs of the service departments to production departments using Direct method and Step method.

Reference no: EM132767900

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