Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. Support departments Operating departments Total Personnel Cafeteria Maintenance Machining Assembly Costs $386,336 $245,806 $155,362 $967,317 $709,363 $2,464,184 Personnel Cafeteria 5% 10% 20% 30% 40% Maintenance 10% 20% 5% 40% 50% 50% 20% For the reciprocal method, what is the correct equation for Maintenance? a. M 0.1P-0.2C = 155362 b. M 0.2P 0.1C = 155362 c. M + 0.2P+ 0.05C =155362 d.M 0.2P 0.05C=155362

Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. Support departments Operating departments Total Personnel Cafeteria Maintenance Machining Assembly Costs $386,336 $245,806 $155,362 $967,317 $709,363 $2,464,184 Personnel Cafeteria 5% 10% 20% 30% 40% Maintenance 10% 20% 5% 40% 50% 50% 20% For the reciprocal method, what is the correct equation for Maintenance? a. M 0.1P-0.2C = 155362 b. M 0.2P 0.1C = 155362 c. M + 0.2P+ 0.05C =155362 d.M 0.2P 0.05C=155362

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fans Company has two service departments-product design and engineering support, and two production departments-assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT Product Design Engineering Support The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly Finishing Multiple Choice $631,492 Design 0% 20% $1,018.633. SERVICES PROVIDED TO $ 162,000 $ 142,000 $ 552,000 $ 842,000 Support 10% 0% 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): Assembly 30% 45% Finishing. 60% 35%
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