Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information: Janitorial Department Usage Cafeteria 50% 10% Cutting 40% Assembly Cafeteria Department Usage 20% Janitorial 60% Cutting 20% Assembly Janitorial Department costs are $450,000. Cafeteria Department costs are $250,000. What are the correct equations to represent (a) the total Janitorial (J) costs, (b) the total Cafeteria (C) costs, and (c) the rewritten equation substituting C into J? % x + a. J = $ % x b. C = $ + ( % x + % x [$ c. J = $
Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information: Janitorial Department Usage Cafeteria 50% 10% Cutting 40% Assembly Cafeteria Department Usage 20% Janitorial 60% Cutting 20% Assembly Janitorial Department costs are $450,000. Cafeteria Department costs are $250,000. What are the correct equations to represent (a) the total Janitorial (J) costs, (b) the total Cafeteria (C) costs, and (c) the rewritten equation substituting C into J? % x + a. J = $ % x b. C = $ + ( % x + % x [$ c. J = $
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 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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