A summary of the usage of the service department services by other service departments as well...

  

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A summary of the usage of the service department services by other service departments as well as by the two producing departments is as follows: Equipment Building Service Cost Center Supervision Maintenance Occupancy Supervision 0 10% 5% Equipment maint. 0 0 Building occunpany 10% 10% Direct costs in the various departments are as follows: Direct Cost P 35,000 30,000 0 0 90,000 350,000 Production Dept. Dept.1 Dept. 2 40% 45% 45% 35% Department Label Supervision SI S2 Equipment maintenance Building occupancy Production Dept. No. 1 S3 PI P2 Production Dept. No. 2 450,000 20. If the direct method of allocation is used, how much of the supervision department's cost would be allocated to the building occupancy department? (Start with Building occupancy, then Supervision) 55% 45% A summary of the usage of the service department services by other service departments as well as by the two producing departments is as follows: Equipment Building Service Cost Center Supervision Maintenance Occupancy Supervision 0 10% 5% Equipment maint. 0 0 Building occunpany 10% 10% Direct costs in the various departments are as follows: Direct Cost P 35,000 30,000 0 0 90,000 350,000 Production Dept. Dept.1 Dept. 2 40% 45% 45% 35% Department Label Supervision SI S2 Equipment maintenance Building occupancy Production Dept. No. 1 S3 PI P2 Production Dept. No. 2 450,000 20. If the direct method of allocation is used, how much of the supervision department's cost would be allocated to the building occupancy department? (Start with Building occupancy, then Supervision) 55% 45%

Answer rating: 100% (QA)

To address your questions well first allocate the costs using the direct method and then proceed to ... View the full answer