Hi,

Below I have attached an assignment. Please give full explanations of answers. Thank You!

Chapter Appendix A coming year: "SomeCrazyCompany" has budgeted costs in its various departments as follows for the Training $ 375,000.00 Custodial $ 225,000.00 Maintenance $ 100,000.00 Offset Printing $ 380,000.00 Lithography $ 524,000.00 Total Overhead $1,604,000.00 below: The company allocates service department costs to other departments, in the order listed Number of Employees Square Metres Occupied Press Time Hours Training 120 1,000 Custodial 200 2,000 Maintenance 400 4,000 Offset Printing 600 8.000 90,000 Lithography 400 24,000 30,000 Total ,720 39,000 120,000 Offset Printing and Lithography are operating departments: the other departments all act in a service capacity. Training is allocated on the basis of number of employees; Custodial on the basis of square metres occupied; and Maintenance on the basis of press time hours. Required: 1. Allocate service department costs to operating departments by the direct method- 8 Marks 2. Allocate service department costs to operating departments by the step method.- 8 Marks