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.

Answer rating: 100% (QA)

1 Direct cost allocation From Cafeteria Heating Cutting Assembly Service departm... View the full answer