User Account

All Pages

Allocate costs of maintenance and it support departments

Assignment Help Business Management
Reference no: EM132725647

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 Maintenance Assembly

Maintenance - 20 % 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.

b) Use the step-down method to allocate the costs of maintenance and IT support departments to assembly and machining departments. Please show all calculations/workings.

Reference no: EM132725647

Questions Cloud

What is the incremental impact on profit : Harry Ltd is manufacturing 1,000 units of a product. The present costs and sales data are as follows:
Which a primary of a discontinued operation : Which a primary difference between a discontinued operation and a restructuring project is? Discontinued operations involves revaluing long-term assets.
Why is vanguard ceo tim buckley viewing innovation : What recommendations would you have for Mr. Buckley to leverage innovation for competitive advantage? Be specific.
Calculate the incremental income : The cost of reworking the Jackets will be $101,100, but the jackets can then be sold for their regular price of $44.00 each. Calculate the Incremental Income
Allocate costs of maintenance and it support departments : Use the direct method to allocate the costs of maintenance and IT support departments to assembly and machining departments.
How the total fund balance would be displayed at year-end : On July 1, the start of its fiscal year, Show how the total fund balance (including the unassigned and committed portions) would be displayed at year-end.
Prepare the statement of cash flow using the indirect format : Equipment with an original cost of $22,800 was sold for $9,120 cash during 2021. Prepare the statement of cash flows using the indirect format.
What are some of the failures of intelligence : What are some of the failures of intelligence or US government policy as identified by the 9/11 commission. How could these failures have been prevented?
Calculate Kay net capital gain for the income year : Kay signed a contract on 14 June 2020 to sell the Coles Bay house for $380,000. Discuss, and calculate Kay's net capital gain for the income year ended June

Reviews

Write a Review

Business Management Questions & Answers

  Bank officer and the market perception

Explain the difference between the bank officer's and the market perception of the value of the bank's shares . Identify key factors for each positions.

  Determining the administrative issues

Discuss two to three challenges an administrator may face when developing and reviewing proposals for budget cuts.

  Credible source to retrieve most recent income statement

Search Yahoo Finance or any other credible source to retrieve the most recent income statement and balance sheet for a major leveraged corporation.

  Participative management or representative management

Which do you think is the most effective form of Employee Involvement and Participation (EIP) program, participative management or representative management?

  Emphasis on teams and a new generation

Technology, globalization, an emphasis on teams and a new generation of young people entering the workforce has dramatically altered many workplaces.

  Market entry strategic report

As individuals, students are required to select an Australian company as the basis of a case study. Once the company has been approved by your lecturer

  What are the core principles of management

What are the core principles of management, explain in one page.

  Reason for visit-chief complain

Reason for visit/Chief Complain: 35 year-old woman who presents for a contraceptive management appointment. She is here for her annual visit and is requesting

  Describe the situation or item and provide a detailed

Describe the situation or item and provide a detailed analysis - you don't need to include numbers. Conduct your analysis at a more conceptual level. Support your answer with credible sources. Cite your sources using proper APA format (both in-tex..

  Create a vision and mission statement

Jimi Henrich owns a custom acoustic guitar manufacturing company: Jimi's Jammers. He designs custom guitars to the specific requirements of the individual customer.

  Explore the use of transformational leadership

Explore the use of Transformational leadership, including the idea that the best leaders are both transactional and transformational

  Product to oppress the people in country

Your boss wants to sell the product to a country run by a dictator who could use the product to oppress the people in his country.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd