laues Assignments& Exams Surveys Groups Chapter 17 Assignment- Quiz asey Follmer
ID: 2391703 • Letter: L
Question
laues Assignments& Exams Surveys Groups Chapter 17 Assignment- Quiz asey Follmer: Atte departments. Using Department Service Dept Maintenance Technology Machining Finishing Maintenance Technology 4,000 32,000 14,000 2,000 4,000 2,000 The Technology Department has costs of $720,000. The Maintenance Department has costs of $108,000 ebs Assume X Company uses the direct method of cost allocation, compute the amount of multiply 2 the Maintenance Department's cost that allocated to the Finishing Department. If you want to compute (2/9) 63000, times 63000 and then divide by 9. DO NOT multiply s$63,000 by .22, Do not enter any dolilar signs or commas. For example enter $20,000 as 20000 Save Save All Responses Go to Submit Quiz EtExplanation / Answer
Answer
Using Departments:
Maintenance Department
Technology Department
Machining
4000
14000
Finishing
32000
2000
Total
36000
16000
Total cost
$ 1,08,000.00
$ 7,20,000.00
Maintenance Department
Technology Department
Machining Department
Finishing Department
Cost to be allocated
$ 1,08,000.00
$ 7,20,000.00
Allocation of Technology Department
$ -
$ (7,20,000.00)
$ 6,30,000.00
$ 90,000.00
Allocation of Maintenance Department
$ (1,08,000.00)
$ -
$ 12,000.00
$ 96,000.00
Cost after allocation
$ -
$ -
$ 6,42,000.00
$ 1,86,000.00
With Formula showing:
Maintenance Department
Technology Department
Machining Department
Finishing Department
Cost to be allocated
$ 1,08,000.00
$ 7,20,000.00
Allocation of Technology Department
0
-720000
=720000*(14000/16000)
=720000*(2000/16000)
Allocation of Maintenance Department
-108000
0
=108000*(4000/36000)
=108000*(32000/36000)
Allocation of Maintenance Department to Finishing Department = $ 96,000 [108000*(32000/36000)]
Using Departments:
Maintenance Department
Technology Department
Machining
4000
14000
Finishing
32000
2000
Total
36000
16000
Total cost
$ 1,08,000.00
$ 7,20,000.00
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