Statement 1: When overheads have been allocated and apportioned to production cost centres, they are charged to the cost of products manufactured in the cost centre.
Statement 2: Production overheads are the overhead costs of both the production departments and the service departments.
1
Both the statements are correct.
2
Both the statements are incorrect.
3
Statement 1 is correct but statement 2 is incorrect.
4
Statement 1 is incorrect but statement 2 is correct.