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Icab Practice Test & Exam Prep | Bangladesh

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Service Department X has total overheads of BDT 100,000 and serves Production Departments A (60%) and B (40%). Service Department Y has total overheads of BDT 80,000 and serves Production Departments A (50%) and B (50%). Under the direct reallocation method, what is the total service department cost allocated to Production Department A?
Correct Answer:
BDT 100,000

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