Andreka Inc. uses the direct method to allocate support department costs to production departments (fabricating and finishing). Information for June follows. Human ResourcesAdministrationService department costs$1,134,000$810,000Services provided to other departments Human resources 10%Administration20% Fabricating35%50%Finishing45%40%a. What amounts of human resources and administration costs should be assigned to Fabricating for June? $______b. What amounts of human resources and administration costs should be assigned to Finishing for June? $______

Direct Allocation method helps to charge the cost of service departments to other parts of the…

Answered: a. What amounts of human resources and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Andreka Inc. uses the direct method to allocate support department costs to production departments (fabricating and finishing). Information for June follows.

	Human Resources	Administration
Service department costs	$1,134,000	$810,000
Services provided to other departments
Human resources		10%
Administration	20%
Fabricating	35%	50%
Finishing	45%	40%

a. What amounts of human resources and administration costs should be assigned to Fabricating for June? $______

b. What amounts of human resources and administration costs should be assigned to Finishing for June? $______

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