Question: Refer to the data for Arbon Company in Exercise 4B-3. In Exercise 4B-3, Arbon Company has three service departments and two operating departments. Selected data

Refer to the data for Arbon Company in Exercise 4B-3.

In Exercise 4B-3, Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Materials Labor Overhead Work in process, May 1 Cost added during May

Required:
Assuming that the company uses the direct method rather than the step-down method to allocate service department costs, how much cost would be assigned to each operating department?

Materials Labor Overhead Work in process, May 1 Cost added during May Equivalent units of production. . . . $14,550 $23,620 $118,100 $88,350 $14,330 $71,650 1,100 1,200 1,100

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