Dainels Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: Service Department Physical Management Plant $ 33,384 $ 68,070 Operating Department General Sales After-Sales Departmental costs $ 232,830 $ 292,500 5,e00 5,000 40,e00 40,00e 33,000 28,000 6,e00 Employee time Space occupied 10,eee General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations is closest to: Multiple Choice $321.410 $335,534
Dainels Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: Service Department Physical Management Plant $ 33,384 $ 68,070 Operating Department General Sales After-Sales Departmental costs $ 232,830 $ 292,500 5,e00 5,000 40,e00 40,00e 33,000 28,000 6,e00 Employee time Space occupied 10,eee General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations is closest to: Multiple Choice $321.410 $335,534
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 1PB: Support department cost allocation Hooligan Adventure Supply produces and sells various outdoor...
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