Chapter 24, Problem 5E

To determine

Allocation of Indirect cost to Service and operating department:

Before allocation of cost of service department, it is necessary to allocate all the indirect cost associated with the all departments concernedso as to know the actual cost incurred by each department. After this process only, the total allocated cost of service department is re-allocated among operating department.

Requirement1:

To Determine: TheAllocation of Indirect expense among all the departments.

To determine

Requirement2:

To determine: The Summary of allocation sheet shall be made.