Allocation of Service department cost to Operating department: The Service departments have been operating in the organization to provide services to the operating department for their smooth functioning. Therefore, cost associated with the service department is the indirect cost of operating department to be allocated among the operating department on some suitable basis. The total of its own cost and allocated cost of service department shall be cost of operating department for the purpose of determination of product or service cost provided. To Determine: The Spreadsheet showing the allocation of cost of service department to operating department.

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Answer 1

Question

Chapter 24, Problem 6E

To determine

Allocation of Service department cost to Operating department:

The Service departments have been operating in the organization to provide services to the operating department for their smooth functioning. Therefore, cost associated with the service department is the indirect cost of operating department to be allocated among the operating department on some suitable basis. The total of its own cost and allocated cost of service department shall be cost of operating department for the purpose of determination of product or service cost provided.

To Determine: The Spreadsheet showing the allocation of cost of service department to operating department.

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Answer 2

Question

Chapter 24, Problem 6E

To determine

Allocation of Service department cost to Operating department:

The Service departments have been operating in the organization to provide services to the operating department for their smooth functioning. Therefore, cost associated with the service department is the indirect cost of operating department to be allocated among the operating department on some suitable basis. The total of its own cost and allocated cost of service department shall be cost of operating department for the purpose of determination of product or service cost provided.

To Determine: The Spreadsheet showing the allocation of cost of service department to operating department.

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Answer 3

Question

Chapter 24, Problem 6E

To determine

Allocation of Service department cost to Operating department:

The Service departments have been operating in the organization to provide services to the operating department for their smooth functioning. Therefore, cost associated with the service department is the indirect cost of operating department to be allocated among the operating department on some suitable basis. The total of its own cost and allocated cost of service department shall be cost of operating department for the purpose of determination of product or service cost provided.

To Determine: The Spreadsheet showing the allocation of cost of service department to operating department.

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Answer 4

Question

Chapter 24, Problem 6E

To determine

Allocation of Service department cost to Operating department:

The Service departments have been operating in the organization to provide services to the operating department for their smooth functioning. Therefore, cost associated with the service department is the indirect cost of operating department to be allocated among the operating department on some suitable basis. The total of its own cost and allocated cost of service department shall be cost of operating department for the purpose of determination of product or service cost provided.

To Determine: The Spreadsheet showing the allocation of cost of service department to operating department.

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Answer 5

Chapter 24, Problem 6E

To determine

Allocation of Service department cost to Operating department:

The Service departments have been operating in the organization to provide services to the operating department for their smooth functioning. Therefore, cost associated with the service department is the indirect cost of operating department to be allocated among the operating department on some suitable basis. The total of its own cost and allocated cost of service department shall be cost of operating department for the purpose of determination of product or service cost provided.

To Determine: The Spreadsheet showing the allocation of cost of service department to operating department.

Answer 6

Chapter 24, Problem 6E

To determine

Allocation of Service department cost to Operating department:

The Service departments have been operating in the organization to provide services to the operating department for their smooth functioning. Therefore, cost associated with the service department is the indirect cost of operating department to be allocated among the operating department on some suitable basis. The total of its own cost and allocated cost of service department shall be cost of operating department for the purpose of determination of product or service cost provided.

To Determine: The Spreadsheet showing the allocation of cost of service department to operating department.

Answer 7

Chapter 24, Problem 6E

To determine

Allocation of Service department cost to Operating department:

The Service departments have been operating in the organization to provide services to the operating department for their smooth functioning. Therefore, cost associated with the service department is the indirect cost of operating department to be allocated among the operating department on some suitable basis. The total of its own cost and allocated cost of service department shall be cost of operating department for the purpose of determination of product or service cost provided.

To Determine: The Spreadsheet showing the allocation of cost of service department to operating department.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 24 - Prob. 1DQ Ch. 24 - What is the difference between operating...Ch. 24 - What are controllable costs?Ch. 24 - _________costs are not within the manager’s...Ch. 24 - Prob. 5DQ Ch. 24 - Prob. 6DQ Ch. 24 - Prob. 7DQ Ch. 24 - What is the difference between direct and indirect...Ch. 24 - Prob. 9DQ Ch. 24 - Prob. 10DQ

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