University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printingand Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in eachdepartment and personnel costs on the basis of labor-hours worked by the employees in each.The following data appear in the company records for the current period:Printing480340Developing2,2081,139$22,000MaintenancePersonnel512Machine-hoursLabor-hours221Department direct costs$12,000$24,000$30,000Required:Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are onlytwo service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediatecalculations. Round your final answers to the nearest whole dollar amounts.)Cost Allocation To:From:MaintenancePersonnelPrintingDevelopingService department costsMaintenancePersonnelTotal0 $$

Step 1 Cost allocation is the process of identifying, aggregating, and assigning costs to any…

Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only wo service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate alculations. Round your final answers to the nearest whole dollar amounts.)

Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only wo service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate alculations. Round your final answers to the nearest whole dollar amounts.)

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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TRUE OR FALSE. 1. If volume increases, all costs will increase. 2. Changes in the level of activity will cause unit variable and unit fixed costs to change in opposite directions 3. The high-low method is used in classifying a mixed cost into its variable and fixed elements. 4. A mixed cost has both selling and administrative cost elements. 5. For planning purposes, mixed costs are generally grouped with fixed costs. 6. Contribution margin is the amount of revenues remaining after deducting cost of goods sold. 7. Both variable and fixed costs are included in calculating the contribution margin
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Indirect expenses a. Cannot be readily traced to one department. b. Are allocated to departments based on the relative benefit each department receives. c. Are the same as uncontrollable expenses. d. a, b, and c above are all true. e. a and b above are true.
Please refer to the following notes as given in the images. Part 1: Understanding Activity-Based Costing a) Define ABC and explain its fundamental principles. b) Compare ABC with traditional costing methods Please answer this questions fully explain your answer in details explanation without any plagiarism and don't copy from other websites. Original. Answers from experts. Answer both part a and b. [*^%/_<>>_/=@+++++×$-'"^&*(*?,::**>[[(&^%%^****>[[[^=÷××$&<>*
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(True or False) Order is not important in the step-down method because costs can be allocated in multiple directions.
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