Senen Corporation has two service departments (Maintenance Department and Security Department) and two producing departments (Assembly Department and Finishing Department). The following are the percentage usage of each department. Departments Use of Maintenance Department Use of Security Department Maintenance 5% Security 10% Assembly 60% 40% Finishing 30% 55% The Maintenance Department cost is $900,000 and the Security Department cost is $500,000. Compute the service cost allocated to Secutity department using direct method.

Senen Corporation has two service departments (Maintenance Department and Security Department) and two producing departments (Assembly Department and Finishing Department). The following are the percentage usage of each department. Departments Use of Maintenance Department Use of Security Department Maintenance 5% Security 10% Assembly 60% 40% Finishing 30% 55% The Maintenance Department cost is $900,000 and the Security Department cost is $500,000. Compute the service cost allocated to Secutity department using direct method.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 8E: A manufacturing company has two service and two production departments. Building Maintenance and...

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Question

Departments	Use of Maintenance Department	Use of Security Department
Maintenance		5%
Security	10%
Assembly	60%	40%
Finishing	30%	55%

The Maintenance Department cost is $900,000 and the Security Department cost is $500,000.

Compute the service cost allocated to Secutity department using direct method.

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