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university of california Operations And Supply Chain Management Assignment Help - Management Accounting


Question - SHOW WORKING
Flinders
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

Factory
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


The
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.

Required:
Prepare a schedule showing the allocation of service department cost ...Read More

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