Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and
Question:
Proportions of services provided to other departments for October 2010 follow.
a. Assuming that the departments are listed in a benefits-provided ranking, what amount of cost should be assigned from human resources to each of the other departments? From administration? From maintenance?
b. What total support department cost was assigned to assembly in October? To finishing?
c. Explain why the cost allocation is affected by the order in which costs areassigned.
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Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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