22 Senen corporation has two service departments (maintenance and security) and two producing departments (assembly and finising). The following are the percentage usage of each department use of maintenance dept use of security dept Maintenance 5 % Security 10 % Assembly 60 % 30 % 40 % Finishing 55 % The maintenance department cost is 900,000 and security department cost is 500,000 22 Compute the service cost allocated to security department using direct method 23 Compute the service cost allocated to maintenance department using step method 24 compute the service cost allocated tosecurity department using reciprocal method
22 Senen corporation has two service departments (maintenance and security) and two producing departments (assembly and finising). The following are the percentage usage of each department use of maintenance dept use of security dept Maintenance 5 % Security 10 % Assembly 60 % 30 % 40 % Finishing 55 % The maintenance department cost is 900,000 and security department cost is 500,000 22 Compute the service cost allocated to security department using direct method 23 Compute the service cost allocated to maintenance department using step method 24 compute the service cost allocated tosecurity department using reciprocal method
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 1CMA
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