Question: Hi, I am getting 2 try again errors below. Can someone please give me the right answers? Thanks! Steamco is reviewing its operations to see

Hi, I am getting 2 try again errors below. Can someone please give me the right answers? Thanks!

Hi, I am getting 2 try again errors below. Can someone pleasegive me the right answers? Thanks! Steamco is reviewing its operations tosee what additional energy-saving projects it might adopt. The company's manufacturing plant

Steamco is reviewing its operations to see what additional energy-saving projects it might adopt. The company's manufacturing plant generates its own electricity using a process capturing steam from its production processes. A summary of the use of service departments by other service departments as well as by the two producing departments at the plant follows. Services Used by Steam Generation Fixed Costs Variable Costs Equipment Maintenance Alpha Beta -0- -0- 0.40 0.10 0.50 Service Department Steam Generation Electric Generating Fixed costs Variable costs Equipment Maintenance -o- -o- 0.10 0.10 0.20 0.10 0.05 0.30 0.50 0.55 0.30 0.50 0.15 Direct costs in thousands) in the various departments follow. Department Direct Cost Steam Generation (S1) $ 210 Electric Generating: Fixed costs (S2) 90 Variable costs (53) 240 Equipment Maintenance (S4) 144 Production Alpha (P1) 1,800 Beta (P2) 1,320 Steamco currently allocates costs of service departments to production departments using the step method. The local power company indicates that it would charge $480,000 per year for the electricity that Steamco now generates Page 485 internally. Management rejected switching to the power company on the grounds that its rates would cost more than the $330,000 ($90,000 + S240,000) cost of the present, company-owned, system. a. What costs of electric service did management use to prepare the basis for its decision to continue generating power internally? b. Prepare for management an analysis of the costs of the company's own electric generating operations. (Use the step method.) The rank order of allocation is (1) SI, (2) S4 (3) S2, and (4) S3. c. Add a section to your analysis to management that you prepared for requirement (b) to indicate whether your answer there would change if the company could realize $174,000 per year from the sale of the steam now used for electric generating (Assume no selling costs.) Part b. Let: Steam generation Electric generating - fixed Electric generating - variable Equipment maintenance Alpha Beta II III S3 S4 144,000 Amount to Be Allocated From: Steam generation (S1) 210,000 Equipment maintenance (S4) 144.000 Electric generating- Fixed (S2) 108,000 Variable (S3) 333,000 Totals To Department: S2 P1 90,000 240,000 1,800,000.00 84,000 21,000.00 18.000 9.000 90,000.00 P2 1,320,000.00 105,000.00 27,000.00 (144,000) (108,000) 54,000.00 144,000.00 (333,000) 215,470.59 117,529.41 - 2,180,470.59 1.713.529.41 Correct Try again. Try again! Correct Correct Part c. Cost source Forgone steam sales Equipment maintenance Direct costs Total Amount $ 174,000 27,000 330,000 $ 531,000 Correcti

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