Question: Can you please help me to solve this problem? So that I can compare your solution on mine too. Thank you! Problem 21: Service Cost

Can you please help me to solve this problem? So that I can compare your solution on mine too. Thank you!

Problem 21: Service Cost Allocation Randy Corp has three service departments and two producing departments. The following information are available for year 2030: Services used by Cost Personnel Maintenance Security 70,000 10% 30% Assembly Personnel Finishing Maintenance 30,000 30% 40% 10% 20% Security 10,000 5% 25% 30% 30% 50% Assembly 500,000 20% Finishing 200,000 The producing department uses direct labor hours with 20,000 for assembly and 30,000 for finishing in determining the factory overhead rate. Required: Determine the factory overhead rate using a. Direct method b. Step method
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
