The Pineapple Pen Company is divided into two operating divisions: pens and pencils. The company allocates the
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Required:
1. Calculate the allocation ratios for the cafeteria and maintenance department. (Carry these calculations out to four significant digits.)
2. Allocate the support service costs to the producing departments.
3. Assume departmental overhead rates are based on direct labour hours. Calculate the overhead rate for the pen division and for the pencil division. (Round overhead rates to the nearest cent.)
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
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