Cedar Hill Manufacturing produces wooden outdoor furniture. Cedar Hill uses the direct method to allocate service department

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Cedar Hill Manufacturing produces wooden outdoor furniture. Cedar Hill uses the direct method to allocate service department costs to the production departments. There are two service departments: administration and custodial services, and two production departments: cutting and assembly. Administration costs are allocated based on labour hours, and custodial services costs are allocated based on space occupied.

Cedar Hill Manufacturing produces wooden outdoor furniture. Cedar Hill uses

REQUIRED
A. Using the direct method
1. Allocate the administration costs to the production departments.
2. Allocate the custodial services costs to the production departments.
B. Calculate the total costs (direct plus allocated) for each production department.
C. Calculate a cost per unit produced for cutting and assembly.

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Related Book For  book-img-for-question

Cost Management Measuring Monitoring And Motivating Performance

ISBN: 9781118168875

2nd Canadian Edition

Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook

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