s CostingSavedHelpSave &Yamane Corporation, a manufacturer, uses the step-down method to allocate service department costs to operating departments. The company has two servicedepartments, Administration and Facilities, and two operating departments, Assembly and Finishing. Data concerning those departments follow:Service DepartmentsOperating DepartmentsAssembly$ 109,260Finishing$ 417,650Administration FacilitiesDepartmental costs$ 27,000$ 67,90017,0009,000Labor hours3,7405,00023,000Space occupied6,4601,66036,000Administration Department costs are allocated first on the basis of labor hours and Facilities Department costs are allocated second on the basis of space occupied.The total Finishing Department cost after allocations is closest to:Multiple Choice$445,630$442,030< Prey1 of 10Next >ENG $427,850$431,830< Prev1 of 10Next >XdPshp

The step down method allocates the cost of service department to other service departments as well…

Answered: The total Finishing Department cost…

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The total Finishing Department cost after allocations is closest to:

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

s Costing
Saved
Help
Save &
Yamane Corporation, a manufacturer, uses the step-down method to allocate service department costs to operating departments. The company has two service
departments, Administration and Facilities, and two operating departments, Assembly and Finishing. Data concerning those departments follow:
Service Departments
Operating Departments
Assembly
$ 109,260
Finishing
$ 417,650
Administration Facilities
Departmental costs
$ 27,000
$ 67,900
17,000
9,000
Labor hours
3,740
5,000
23,000
Space occupied
6,460
1,660
36,000
Administration Department costs are allocated first on the basis of labor hours and Facilities Department costs are allocated second on the basis of space occupied.
The total Finishing Department cost after allocations is closest to:
Multiple Choice
$445,630
$442,030
< Prey
1 of 10
Next >
ENG

$427,850
$431,830
< Prev
1 of 10
Next >
Xd
Ps
hp

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