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Star manufacturing company has two producing departments and two service departments for the month of...

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Accounting

Star manufacturing company has two producing departments and two service departments for the month of November 2019. The Direct departmental expenses were as follows:

Producing Departments

X $1200

Y $1400

Service Departments

M $400

N $200

The cost of service departments and M and N are allocated to the departments on a percentage basis on under

Cost of Department M

10% to X

40% to Y

50% to N

Cost of service Department N

80% to X

10% to Y

10 % to M

Required: Prepare a Statement to show the distribution of the service department cost to the producing department.

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