university of california Operations And Supply Chain Management Assignment Help - Management Accounting
Question - SHOW WORKING
Company has two service departments, Factory Administration and
Maintenance, and two operating departments. Selected information
relating to these departments is given below:
Service Departments Operating Departments
Administration Maintenance X Y
Departmental costs $ 143,000 $ 69,674 $ 701,000 $ 601,000
Number of employees 4 4 50 50
Total labor hours 4,100 6,100 50,000 60,000
company allocates service department costs by the step-down method.
Factory Administration costs are allocated first on the basis of number
of employees, and then Maintenance costs are allocated on the basis of
total labor hours.
Prepare a schedule showing the allocation of service department cost ...Read More
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