Question: Our company has two services (cafeteria and heating) and two productions (cutting and assembly) departments. suppose that cafeteria has an accumulated cost of 79.436$ and
Our company has two services (cafeteria and heating) and two productions (cutting and assembly) departments. suppose that cafeteria has an accumulated cost of 79.436$ and heating has an accumulated cost of 75.979$.
The following table shows the allocation bases for each department
CAFETERIA | HEATING | CUTTING | ASSEMBLY | TOTAL | |
SERVICES PROVIDED | |||||
CAFETERIA (No. of employee) | 10 | 20 | 500 | 400 | 930 |
Heating (square meters) | 308 | 615 | 1615 | 2462 | 5000 |
a. prepare a cost allocation table by using the direct method.
b. prepare a cost allocation table by using the step-down method. Assume that cafeteria rank number 1.
c. prepare a cost allocation table by using the reciprocal method.
it is Managerial Accounting Course.
Step by Step Solution
3.45 Rating (158 Votes )
There are 3 Steps involved in it
1 Direct cost allocation From Cafeteria Heating Cutting Assembly Service departm... View full answer
Get step-by-step solutions from verified subject matter experts
