Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2).

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Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow.

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The direct costs of the service departments in the previous period were $20,000 for Repairs, $39,600 for HR, and $45,000 for IT.

RequiredUse the direct method to allocate the service department costs to the production departments.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Fundamentals of Cost Accounting

ISBN: 978-1259969478

6th edition

Authors: William N. Lanen, Shannon Anderson, Michael W Maher

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