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Parat College allocates support department costs to its individual schools using the step method. Information for May 2005 is as follows:
Support departments
Maintenance
Power
Costs incurred
$99,000
$54,000
Service percentages provided to:
--
10
%
20
School of Education
30
School of Technology
50
70
100
What is the amount of May 2005 support department costs allocated to the School of Education?
What amount should the rights be reported in the consolidated balance sheet and What effect does the dividend have on the retained earnings and minority interest balances in the parent company's consolidated balance sheet
Evaluate the relevant costs of the old machine and the new machine.
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