Charleston Company has two service departments whose direct department costs are $40,000 and $60,000, respectively, and two producing departments whose direct department costs $500,000 and $450,000, respectively. The combined total department costs for the producing departments after allocating the service departments are

Charleston Company has two service departments whose direct department costs are $40,000 and $60,000, respectively, and two producing departments whose direct department costs $500,000 and $450,000, respectively. The combined total department costs for the producing departments after allocating the service departments are

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 7E: Columbia Products Inc. has two divisions, Salem and Seaside. For the month ended March 31, Salem had...

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Oak Company has two producing and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of service costs used by the various departments are as follows: (P1, $300,000); (P2, $200,000); (S1, $100,000; S2-25%, P1-50%, P2-25%); (S2, $40,000; S1-10%, P1-50%, P2-40%). What is the total cost of P2 if the costs of service departments are allocated using the step method (start with S1)? $253,334$262,222 $253,889 $251,111 $241,000
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Abound Company has two support departments (S1 and S2) and two producing departments (X and Y). Department S1 serves Departments S2, X, and Y in the following percentages, respectively: 10%, 35%, 55%. Department S2 serves Departments S1, X, and Y in the following percentages, respectively: 6%, 50%, and 44%. Direct department costs for S1, S2, X, and Y are $15,000, $8,000, $105,000, and $97,500, respectively.What are the total costs to be allocated from Department S1? a.$15,000 b.$15,573 c.$9,500 d.$800
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Yekka Corporation has two producing department and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of services costs used by various departments are as follows: Cost Center Direct Costs Proportion of services used by: S1 S2 P1 P2 P1 90,000 P2 60,000 S1 20,000 - .80 .1 .1 S2 32,000 .20 - .50 .30 In calculating predetermined overhead rates, machine hours are used as the base in P1 and direct labor hours as the base in P2. P1 P2 Machine hours 50,000 40,000 Direct labor hours 40,000 20,000 Requirements: Allocate the service department costs to operating departments and compute the factory…
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