Use the information given in Exercise 8.16.

REQUIRED

A. Assume that the single-rate method is used and calculate the cost allocation to each department for housekeeping services if estimated hours are used.

B. Assume that the dual-rate method is used; estimated hours are used to allocate fixed costs, and actual hours are used to allocate variable costs. Calculate the cost allocation to each department for housekeeping services.

C. List one advantage and one disadvantage for each type of allocation method.

Transcribed Image Text:

Estimated Hours Actual Hours Spent Cleaning Spent Cleaning Department A Department B Department C 1,600 1,500 1,400 1,600 2,000 1,800 Total 5,000 4,900