Question: Question 3 (15 marks) A Ltd has two service departments, maintenance and IT support, that assist two production departments, assembly and machining. Budgeted costs of

Question 3 (15 marks)

A Ltd has two service departments, maintenance and IT support, that assist two production departments, assembly and machining. Budgeted costs of maintenance and IT support are $800,000 and $1,800,000 respectively. Usage of the service departments' output during the year is anticipated to be:

Services provided to:

Maintenance

IT support

Assembly

Machining

Services provided by:

Maintenance

20%

60%

IT support

10%

60%

30%

Required:

a) Use the direct method to allocate the costs of maintenance and IT support departments to assembly and machining departments. Please show all calculations/workings.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Water (50F) flows with a speed of 5 ft /s through a horizontal run of PVC pipe. The length of the pipe is 100 ft , and the pipe is schedule 40 with a nominal diameter of 2.5 inches. Calculate (a) The...

Question 3 ( 35 marks) Space Ltd has two production departments, A and B. The following budgeted overheads are expected to be incurred next quarter: $ Indirect costs Department A 15,080 Department B...

Part B - Question 2 Use the following information to answer the questions below ( 10 marks available). Shreshtha Art Company is developing overhead rates based on direct-labor hours for two...

Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people...

Question 4 (22 marks) Helm Ltd. has two production departments and two service department and presented the following data for the period ending 30 June 2020. The production departments are forming...

Question 3 (25 marks) Welshpool Engineering has two production departments and two support departments. Budgeted data for the year follow. The company does not separate fixed and variable costs....

Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people...

Hi. Crystal Magic Company is developing departmental overhead rates based on direct-labor hours for its two production departments in the production of light-catcher art pieces, Etching and Assembly....

Hi. Please provide solution in good form with thourough explanation. Crystal Magic Company is developing departmental overhead rates based on directlabor hours for its two production departments in...

Your supervisor has asked you to find new ways to improve business practices that relate to developing and nurturing business relationships. Provide an example of an email identifying two areas that...

Compute lim x 1 0 x 1 0 0 x 2 - 6 0 . Select the correct choice below and fill in any answer boxes in your choice. A . lim x 1 0 x 1 0 0 x 2 - 6 0 = ( Simplify your answer. ) B . The limit does not...

1. Do you believe that soft drinks and other sugared beverages contribute to obesity, diabetes, and other health-related issues? 2. Assess Coca-Colas response to the obesity controversy. 3. Do you...

Does talking on a hands-free cell phone distract drivers? Researchers recruit 40 student subjects for an experiment to investigate this question. They have a driving simulator equipped with a...

List the key pros and cons of fixed versus flexible exchange rate regimes.

Jos. A. Bank Clothiers, Inc. is a direct marketer of men?s clothing, with over 800 retail stores in 42 states, that was acquired by Men?s Wearhouse in 2014. The following are selected financial data...

Write a program that reads each line in a file, reverses its lines, and writes them to another file. For example, if the file input.txt contains the lines Mary had a little lamb Its fleece was white...

Communicating Employee Benefits Do it Right or Risk Getting Burned Employers planning to hike their benefits costs or reduce their coverage must carefully craft their message to employees. Just look...

2. In this chapter, the reader should reflect on the following concepts: historical reason, goal orientation, core values and top performance.

1. To understand how to set goals in a communication process

11. How often have you passed on to others this type of information, which you have filled in yourself? Never, then you should think again.