Hildale Manufacturing is organized with two service departments (Administration and Maintenance) and two production departments (Assembly and Finishing). The company uses the step method to allocate service department costs, allocating costs from Administration first. In March, $161,000 was allocated from Maintenance to Assembly (including any cost allocated from Administration to Maintenance). In addition, $34,000 was allocated from Administration to Maintenance in March. Assembly used 20 percent of Maintenance services and Finishing used 60 percent of Maintenance services in March. Finally, Maintenance used 20 percent of Administration services in March. Required: a. What are the total costs incurred by Administration in March? b. What are the total costs incurred by Maintenance (before any allocations) in March?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hildale Manufacturing is organized with two service departments (Administration and Maintenance) and two production departments
(Assembly and Finishing). The company uses the step method to allocate service department costs, allocating costs from
Administration first. In March, $161,000 was allocated from Maintenance to Assembly (including any cost allocated from Administration
to Maintenance). In addition, $34,000 was allocated from Administration to Maintenance in March.
Assembly used 20 percent of Maintenance services and Finishing used 60 percent of Maintenance services in March. Finally,
Maintenance used 20 percent of Administration services in March.
Required:
a. What are the total costs incurred by Administration in March?
b. What are the total costs incurred by Maintenance (before any allocations) in March?
a. Total costs incurred by Administration in March
b. Total costs incurred by Maintenance (before any allocations) in March
Transcribed Image Text:Hildale Manufacturing is organized with two service departments (Administration and Maintenance) and two production departments (Assembly and Finishing). The company uses the step method to allocate service department costs, allocating costs from Administration first. In March, $161,000 was allocated from Maintenance to Assembly (including any cost allocated from Administration to Maintenance). In addition, $34,000 was allocated from Administration to Maintenance in March. Assembly used 20 percent of Maintenance services and Finishing used 60 percent of Maintenance services in March. Finally, Maintenance used 20 percent of Administration services in March. Required: a. What are the total costs incurred by Administration in March? b. What are the total costs incurred by Maintenance (before any allocations) in March? a. Total costs incurred by Administration in March b. Total costs incurred by Maintenance (before any allocations) in March
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