QQWTWV844 Corporation uses the step-down method to allocate service department costs to operating departments. The company has three service departments and two operating departments. Data concerning those departments follow: Admin. $162,500 60 4,000 Hours of press time Service Departments Janitorial $72,750 33 10,000 Operating Departments Binding $355,000 295 Maintenance Printing $430,000 Costs $39,000 # of employees 132 190 Sq. feet occ. 15,000 30,000 30,000 90,000 60,000 QQWTWV844's Admin. Department's costs are allocated on the basis of number of employees; Janitorial Department's costs are allocated on the basis of square feet occupied; Maintenance Department's costs are allocated on the basis of press time hours used. (ID#86342) Q: What is QQWTWV844's total Binding Department's cost (including its beginning cost) after all allocations? A: $
QQWTWV844 Corporation uses the step-down method to allocate service department costs to operating departments. The company has three service departments and two operating departments. Data concerning those departments follow: Admin. $162,500 60 4,000 Hours of press time Service Departments Janitorial $72,750 33 10,000 Operating Departments Binding $355,000 295 Maintenance Printing $430,000 Costs $39,000 # of employees 132 190 Sq. feet occ. 15,000 30,000 30,000 90,000 60,000 QQWTWV844's Admin. Department's costs are allocated on the basis of number of employees; Janitorial Department's costs are allocated on the basis of square feet occupied; Maintenance Department's costs are allocated on the basis of press time hours used. (ID#86342) Q: What is QQWTWV844's total Binding Department's cost (including its beginning cost) after all allocations? A: $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:QQWTWV844 Corporation uses the step-down method to allocate service department costs to operating departments. The company
has three service departments and two operating departments. Data concerning those departments follow:
Service Departments
Janitorial
$72,750
Operating Departments
Binding
$355,000
295
30,000
30,000
Admin.
$162,500
Maintenance
$39,000
Printing
$430,000
Costs
# of employees
Sq. feet occ.
Hours of press time
60
33
132
190
4,000
10,000
15,000
90,000
60,000
QQWTWV844's Admin. Department's costs are allocated on the basis of number of employees; Janitorial Department's costs are
allocated on the basis of square feet occupied; Maintenance Department's costs are allocated on the basis of press time hours
used. (ID#86342)
Q: What is QQWTWV844's total Binding Department's cost (including its beginning cost) after all allocations?
A: $
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