Fans Company has two service departments-product design and engineering support, and two produc distribution of each service department's efforts to the other departments is shown below SERVICES PROVIDED TO SERVICE DEPARTMENT Product Design Engineering Support The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 162,000 Engineering Support $ 142,000 Assembly $ 552,000 Finishing $ 842,000 Design 0% 20% Support 10% 0% Assembly 30% 45% Finishing 60% 35% The total cost accumulated in the assembly department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%. and round all dollar amounts to the nearest whole dollar. Assume that the engineering support department goes first):
Fans Company has two service departments-product design and engineering support, and two produc distribution of each service department's efforts to the other departments is shown below SERVICES PROVIDED TO SERVICE DEPARTMENT Product Design Engineering Support The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 162,000 Engineering Support $ 142,000 Assembly $ 552,000 Finishing $ 842,000 Design 0% 20% Support 10% 0% Assembly 30% 45% Finishing 60% 35% The total cost accumulated in the assembly department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%. and round all dollar amounts to the nearest whole dollar. Assume that the engineering support department goes first):
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 23E: Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating...
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