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Category > Accounting Posted 15 May 2017 My Price 10.00

Warren Ltd. has two production departments, Building A and Building B

Warren Ltd. has two production departments, Building A and Building B, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of June follow:
        Proportion of Services Used by
          
Department Direct Costs Maintenance Cafeteria Building A Building B
  Building A $ 500,000                  
  Building B   319,000                  
  Maintenance   217,000   A????1   0.1   0.5   0.4  
  Cafeteria   177,000   0.7   A????1   0.1   0.2  
 
Required

Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Note: Due to rounding, the cost allocations to the various departments may not add up to the total service department costs being allocated.)
  Cost Allocated To:
From: Maintenance Cafeteria Building A Building B
  Service department costs $    $    $    $   
  Maintenance            
  Cafeteria            
          
  Total $    $    $    $   
          
 

Answers

Alpha Geek
(8)
Status NEW Posted 15 May 2017 05:05 PM My Price 10.00

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file 1494867965-1085104_1_636301239333825148_1085104.xlsx preview (196 words )
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