Solution-Allocate the costs of the service departments

Allocate the costs of the service departments

Assignment Help Cost Accounting

Reference no: EM132561779

The Cutright Company has a small factory with two service departments, Power and Maintenance, and two producing departments, Cutting and Assembly.

The Power Department cost is allocated on the basis of kilowatt hours, and the Maintenance Department cost is allocated on the basis of maintenance hours. The following information is available:

Power Maintenance Cutting Assembly

Departmental Cost $100,00 $40,000 $200,000 $160,000

before allocations

Kilowatt hours 50 200 600 200

Maintenance 20 30 150 100

Required:

Question 1: Using the Direct Method and Step Method, allocate the costs of the service departments to the 2 operating departments.

Reference no: EM132561779

Questions Cloud

How to make a production report for the department : How to Make a production report for the department using the weighted-average method. Costs in the beginning inventory. Costs added to production during month

What is the merchandise inventory of Oriole at December : On January 1, 2017, the merchandise inventory of Oriole, Inc. was $1750000. What is the merchandise inventory of Oriole at December 31, 2017

Terms of gene flow and interbreeding between species : Explain what this means in terms of gene flow and interbreeding between species.

Determine whether the company should produce special order : ABC Company has annual productive capacity of 70000 units per year. Determine whether the company should produce the special order

Allocate the costs of the service departments : The Cutright Company, Using the Direct Method and Step Method, allocate the costs of the service departments to the 2 operating departments.

Should abc company make or buy the component : Question - BUY OR MAKE Problem. Based upon relevant cost differences, should ABC Company make or buy the component. Show the calculation

Prepare income statement using variable method : Prepare income statement using VARIABLE method. The information had been gathered for the year ended December 2019 from Rjfn manufacturing.

What is the chance that person will have sickle cell anemia : Normal hemoglobin ("S") is dominant over sickle cell hemoglobin ("s"). If a person with SS hemoglobin has a child with a person

Manage supply chain risk during current covid-19 pandemic : What are some of the services that these companies offer to help their customers manage supply chain risk during current COVID-19 pandemic

User Account

All Pages

Allocate the costs of the service departments

Reference no: EM132561779

Reference no: EM132561779

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT