Smeltzer uses the Direct Method to allocate support department costs. The Service Departments are HR and Custodial services. Production Departments are Fabrication and Assembly. Initial cost distributions to each department are as follows: HR = $240,000; Custodial = $620,000; Fabrication = $1,400,000 and Assembly = $890,000. HR Custodial Fabrication Square feet 600 1,000 5,000 30 People 8 15 Smeltzer uses # people as cost driver for HR and square footage for Custodial costs. What will be the total costs for the Assembly Department after all service department costs are allocated? Assembly. 3,000 22 O $1,198,000 O $1,952,000 O $1,143.750 O $1,167,750

Smeltzer uses the Direct Method to allocate support department costs. The Service Departments are HR and Custodial services. Production Departments are Fabrication and Assembly. Initial cost distributions to each department are as follows: HR = $240,000; Custodial = $620,000; Fabrication = $1,400,000 and Assembly = $890,000. HR Custodial Fabrication Square feet 600 1,000 5,000 30 People 8 15 Smeltzer uses # people as cost driver for HR and square footage for Custodial costs. What will be the total costs for the Assembly Department after all service department costs are allocated? Assembly. 3,000 22 O $1,198,000 O $1,952,000 O $1,143.750 O $1,167,750

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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