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Assignment
There are 4 questions (below) that cover material from Units #1, #2 and #3. You are required to prepare and/or complete and then submit the appropriate financial statements. Clearly identify on the page footer your name and student number. This paper will be marked out of 50 with your overall result counting towards 10% of your final grade. Please send me your assignment through the dropbox below.
1. Delta Manufacturing Company has two Service Departments-Custodial Services and Maintenance-and three Production Departments-Cutting, Milling, and Assembly. Delta allocates the cost of Custodial Services on the basis of square metres and Maintenance on the basis of labour hours. Budgeted operating data for the year just completed follow:
Required:
a) Prepare a schedule to allocate Service Department costs to the Production Departments by the direct method, rounding all dollar amounts to the nearest whole dollar.
b) Prepare a schedule to allocate Service Department costs to the Production Departments by the step-down method, allocating Custodial Services first, and rounding all amounts to the nearest whole dollar.
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