Milford Industries provides medical equipment to oncology and surgical units in major hospitals. Milford allocates indirect costs to five departments and redistributes the IDC for Quality Assurance and Engineering to the other three departments monthly. The table summarizes IDC allocation and direct labor (DL) hours for one month. Department Production Subassemblies Final assembly Quality assurance Engineering IDC Allocation, $ Actual DL Hours 575 30,000 20,000 1075 10,000 675 13,000 26,500 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Determine the IDC redistribution for each of the three departments. The IDC redistribution is as follows: Production = $ 52 Subassemblies = $ 19 Final assembly = $ 15

Milford Industries provides medical equipment to oncology and surgical units in major hospitals. Milford allocates indirect costs to five departments and redistributes the IDC for Quality Assurance and Engineering to the other three departments monthly. The table summarizes IDC allocation and direct labor (DL) hours for one month. Department Production Subassemblies Final assembly Quality assurance Engineering IDC Allocation, $ Actual DL Hours 575 30,000 20,000 1075 10,000 675 13,000 26,500 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Determine the IDC redistribution for each of the three departments. The IDC redistribution is as follows: Production = $ 52 Subassemblies = $ 19 Final assembly = $ 15

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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