Solution-How much of the total support department costs

How much of the total support department costs should be

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Reference no: EM132661901

A company operates with two processing departments:

Cutting department
Assembly department.

The human resources and maintenance departments support the processing departments.

Budgeted costs for the support departments for the period are as follows:

Human resources Maintenance

Salaries and wages $ 105,000 $ 14,000

Direct costs 15,000 24,000

Depreciation 30,000 32,000

Total $ 150,000 $ 70,000

Costs are allocated to the processing departments based on the following activity levels:

Supplied by Human resources Maintenance Cutting Assembly

Human resources (employees) 15 25 175 200

Maintenance (square metres) 2,000 3,000 10,000 40,000

Problem 1: Using the step-down method, beginning with human resources, how much of the total support department costs should be allocated to assembly?

Reference no: EM132661901

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How much of the total support department costs should be

Reference no: EM132661901

Reference no: EM132661901

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