Mayfair Company has two service departments (A and B) and two producing departments (C and D). Last year, direct costs were A $80,000; B $60,000; C $15,000 and D $20,000. A provides services to B 10%, C 60% and D 30% while B provides services to A 30%, C 20% and D 50%. Using the algebraic method, Dept. A's allocation to Dept. C was $35,051 $14,021 $21,031 $60,619
Mayfair Company has two service departments (A and B) and two producing departments (C and D). Last year, direct costs were A $80,000; B $60,000; C $15,000 and D $20,000. A provides services to B 10%, C 60% and D 30% while B provides services to A 30%, C 20% and D 50%. Using the algebraic method, Dept. A's allocation to Dept. C was $35,051 $14,021 $21,031 $60,619
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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Mayfair Company has two service departments (A and B) and two producing departments (C and D). Last year, direct costs were A $80,000; B $60,000; C $15,000 and D $20,000. A provides services to B 10%, C 60% and D 30% while B provides services to A 30%, C 20% and D 50%. Using the algebraic method, Dept. A's allocation to Dept. C was
$35,051
$14,021
$21,031
$60,619
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