The following information about Mon fort Manufacturing is available. Cost % of training work used %...
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The following information about Mon fort Manufacturing is available. Cost % of training work used % of maintenance work used Support Department Training $400 000 10% Maintenance $450 000 20% Production Department Machining Polishing 35% 40% 45% 50% Required: (a) Using the direct method, allocate the support department overhead costs to the machining department and polishing department respectively. (b) Using the step-down method, allocate the support department overhead costs to the machining department and polishing department respectively, assuming that training department is allocated first. The following information about Mon fort Manufacturing is available. Cost % of training work used % of maintenance work used Support Department Training $400 000 10% Maintenance $450 000 20% Production Department Machining Polishing 35% 40% 45% 50% Required: (a) Using the direct method, allocate the support department overhead costs to the machining department and polishing department respectively. (b) Using the step-down method, allocate the support department overhead costs to the machining department and polishing department respectively, assuming that training department is allocated first.
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a Direct method In this method service department costs are directly apportioned to production depar... View the full answer
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
Posted Date:
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