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User of Service Maintenance IT HR Maintenance 5 % HR IT 10 % 5 % Cutting 35 % |45% 65%

User of Service Maintenance IT HR Maintenance 5 % HR IT 10 % 5 % Cutting 35 % |45% 65%

FINANCIAL ACCOUNTING
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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4.B. Salsa has three service departments, the Maintenance Department, the IT Department and HR Department. Salsa has also two production departments, the Cutting department and the Mixing Department. The usage of the three service departments' output for the year is as follows: Provider of Service User of Service Maintenance IT HR Maintenance 5 % HR IT 10 % 5 % |Cutting 35 % 45% 65% Mixing 55 % 55% 25% The budgeted costs in the three service departments for the year as follows: Maintenance: $ 180,000 IT: $ 120,000 HR: $ 280,000 Use step-down method to allocate the budgeted costs of the three service departments on production departments.
Transcribed Image Text:4.B. Salsa has three service departments, the Maintenance Department, the IT Department and HR Department. Salsa has also two production departments, the Cutting department and the Mixing Department. The usage of the three service departments' output for the year is as follows: Provider of Service User of Service Maintenance IT HR Maintenance 5 % HR IT 10 % 5 % |Cutting 35 % 45% 65% Mixing 55 % 55% 25% The budgeted costs in the three service departments for the year as follows: Maintenance: $ 180,000 IT: $ 120,000 HR: $ 280,000 Use step-down method to allocate the budgeted costs of the three service departments on production departments.
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