Caris Company is a manufacturer with two production departments (Machining andAssembly) as well as two support departments (Materials Requisitions and Utility Services)For the last quarter of 2020, Caris's cost records indicate the followingBudgetedoverhead costsbefore any inter-department costallocationsSupport worksupplied by MR(Number ofrequisitions)Support worksupplied by US(Power costs)SUPPORTMaterials UtilityRequisitions Services(MR) (US)$400,000 $2,000,000010%25%0a. Direct method (b. Step-down method (allocate MR first)c. Step-down method (allocate US firstd. The Algebraic reciprocal method.Machining Assembly TotalPRODUCTION$9,456.000 $13,458,000 $25,314,00040%30%3.5%60%100%100%Required:1. Allocate the two support departments costs to the two operating departments using thefollowing methods:

The step method usually referred to as the step-down methodology, assigns a service department's…

Cars Company manufacturer with two production departments (Machining Assembly) as well as two support departments (Materials Requisitions and Utility Services) For the last quarter of 2020, Caris's cost seconds indicate the following Budgeted overhead costs before any inter department cost Support work supplied by MR (Number of requisitions) Support wirk supplied by US (Powers) SUPPORT Utility Materials Requisitions Services (US) $2,000,000 $9,456,000 $13,458,000 $25,314,000 (MR) $400,000 10% PRODUCTION Machining Assembly Total & Direct method ( b. Step-down method (allocate MR first) Step-down method (allocate US fi 4. The Algebraicrecipecal method. 40% 60% 100% 100% Required: 1. Allocate the two support departments costs to the two operating departments using the following methods

Cars Company manufacturer with two production departments (Machining Assembly) as well as two support departments (Materials Requisitions and Utility Services) For the last quarter of 2020, Caris's cost seconds indicate the following Budgeted overhead costs before any inter department cost Support work supplied by MR (Number of requisitions) Support wirk supplied by US (Powers) SUPPORT Utility Materials Requisitions Services (US) $2,000,000 $9,456,000 $13,458,000 $25,314,000 (MR) $400,000 10% PRODUCTION Machining Assembly Total & Direct method ( b. Step-down method (allocate MR first) Step-down method (allocate US fi 4. The Algebraicrecipecal method. 40% 60% 100% 100% Required: 1. Allocate the two support departments costs to the two operating departments using the following methods

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Finance
Subject: acounting
A9
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