Required: Determined the amount of factory overhead cost of service departments allocated to producing departments using:1. Direct method(for mixing)2. Step method (for assembly)3. Reciprocal method (for mixing) Irish Corporation distributes its service department overhead costs directly toRDporation distributes its service department overhead costs directly toucing departments. Information for January, 2030 is presented below.Problem 18: Service Cost AllocationMaintenanceUtilities93,50045,000FOH costService Provided toMaintenanceUtilities10%20%40%30%MixingAssembly40%60%

Allocation of Service Department Overheads using Direct Method Under Direct Method, Service…

PrCarporation distributes its service department overhead costs directly to ucing departments. Information for January, 2030 is presented below. Maintenance Utilities 93,500 FOH cost Service Provided to Maintenance Utilities 45,000 10% 20% 40% 30% Mixing Assembly 40% 60%

PrCarporation distributes its service department overhead costs directly to ucing departments. Information for January, 2030 is presented below. Maintenance Utilities 93,500 FOH cost Service Provided to Maintenance Utilities 45,000 10% 20% 40% 30% Mixing Assembly 40% 60%

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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Question

100%

Required: Determined the amount of factory overhead cost of service departments allocated to producing departments using:

1. Direct method(for mixing)

2. Step method (for assembly)

3. Reciprocal method (for mixing)

Irish Corporation distributes its service department overhead costs directly to
RDporation distributes its service department overhead costs directly to
ucing departments. Information for January, 2030 is presented below.
Problem 18: Service Cost Allocation
Maintenance
Utilities
93,500
45,000
FOH cost
Service Provided to
Maintenance
Utilities
10%
20%
40%
30%
Mixing
Assembly
40%
60%

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

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Which of the following statement is not correct? Select one: а. FIFO method consider the beginning cost in its calculation of total cost of beginning work in process. b. FIFO used when work perform on the manufactured units is based on an order received. Ос. FIFO method is preferable to be used to get in detail information about the cost. d. FIFO consider work performed on all units that go through the department to be uniform.
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