Joanne, owner of Automated Fabric Inc., is interested in using the reciprocal method for allocating service department costs. The following data from operations have been collected for analysis. Budgeted manufacturing overhead costs: Maintenance (Support Dept) $150,000 Personnel (Support Dept) $ 80,000 Weaving (Operating Dept) $325,000 Colourising (Operating Dept) $175,000 Services provided: By Maintenance (budgeted labour-hours): to Personnel 500 to Weaving 3,500 to Colorizing 2,000 By Personnel (Number of employees): Plant Maintenance 5 Weaving 15 Colorizing 10 Required: Using the reciprocal method calculate: a) the total cost in the Maintenance department b) the total cost in the Personnel department Please dont give solutions image format thank you
Joanne, owner of Automated Fabric Inc., is interested in using the reciprocal method for allocating service department costs. The following data from operations have been collected for analysis. Budgeted manufacturing overhead costs: Maintenance (Support Dept) $150,000 Personnel (Support Dept) $ 80,000 Weaving (Operating Dept) $325,000 Colourising (Operating Dept) $175,000 Services provided: By Maintenance (budgeted labour-hours): to Personnel 500 to Weaving 3,500 to Colorizing 2,000 By Personnel (Number of employees): Plant Maintenance 5 Weaving 15 Colorizing 10 Required: Using the reciprocal method calculate: a) the total cost in the Maintenance department b) the total cost in the Personnel department Please dont give solutions image format thank you
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...
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Joanne, owner of Automated Fabric Inc., is interested in using the reciprocal method for allocating service department costs. The following data from operations have been collected for analysis.
Budgeted manufacturing
Maintenance (Support Dept) $150,000
Personnel (Support Dept) $ 80,000
Weaving (Operating Dept) $325,000
Colourising (Operating Dept) $175,000
Services provided:
By Maintenance (budgeted labour-hours):
to Personnel 500
to Weaving 3,500
to Colorizing 2,000
By Personnel (Number of employees):
Plant Maintenance 5
Weaving 15
Colorizing 10
Required:
Using the reciprocal method calculate:
a) the total cost in the Maintenance department
b) the total cost in the Personnel department
Please dont give solutions image format thank you
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