DORY Company has two support departments (Power and Maintenance) and two producing departments (Assembly and Finishing). The direct allocation method is used to assign support department costs to the producing departments. The causal factor for the power costs is kilowatt hours: the causal factor for the maintenance costs is repair hours. Assume the following information: Assembly Finishing $50,000 100,000 2.000 Power Direct costs Kilowatt hours Repair hours Question 1/25 What would be the Maintenance Department allocation to the Finishing Department Maintenance $150,000 10,000 X $100,000 $75,000 90,000 500 2500 1. OS20,000 2. os22,222 3. OS60,000 4. oS66,667 5. OS71,111 Question 2/25 What would be the Power Department allocation to the Assembly Department? 1. O$45,000 2. OS47,368 3. OS50,000 4. OS54,474 5. OS82,895

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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DORY Company has two support departments (Power and Maintenance) and
two producing departments (Assembly and Finishing). The direct allocation
method is used to assign support department costs to the producing
departments. The causal factor for the power costs is kilowatt hours: the causal
factor for the maintenance costs is repair hours. Assume the following
information:
Assembly Finishing.
550,000
100,000
2.000
Power
Maintenance
Direct costs
Kilowatt hours
Repair hours
$100,000 $150,000
10,000
$75,000
90,000
2.500
500
Question 1/25
What would be the Maintenance Department allocation to the Finishing Department
1. OS20,000
2. Os22,222
3. OS60,000
4. OS66,667
5. OS71,111
Question 2/25
What would be the Power Department allocation to the Assembly Department?
1. O$45,000
2. OS47,368
3. OS50,000
4. OS54,474
5. OS82,895
Transcribed Image Text:DORY Company has two support departments (Power and Maintenance) and two producing departments (Assembly and Finishing). The direct allocation method is used to assign support department costs to the producing departments. The causal factor for the power costs is kilowatt hours: the causal factor for the maintenance costs is repair hours. Assume the following information: Assembly Finishing. 550,000 100,000 2.000 Power Maintenance Direct costs Kilowatt hours Repair hours $100,000 $150,000 10,000 $75,000 90,000 2.500 500 Question 1/25 What would be the Maintenance Department allocation to the Finishing Department 1. OS20,000 2. Os22,222 3. OS60,000 4. OS66,667 5. OS71,111 Question 2/25 What would be the Power Department allocation to the Assembly Department? 1. O$45,000 2. OS47,368 3. OS50,000 4. OS54,474 5. OS82,895
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