Best Garments has two producing departments, cloth and garments, and two service departments, personnel and store....
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Best Garments has two producing departments, cloth and garments, and two service departments, personnel and store. The company's budget for April 20X1 is as follows: (Click the icon to view the budget figures.) Best Garments allocates personnel costs on the basis of number of employees and store costs on the basis of square feet. Requirements 1. Allocate personnel and store costs to the producing departments using the direct method. 2. Allocate personnel and store costs to the producing departments using the step-down method. Allocate personnel costs first. Data table Direct department costs Square feet Number of employees Service Departments Personnel $ 175,000 $ 8,700 62 Production Departments Store Cloth Garments 282,000 $2,300,000 $ 4,800 128 40,100 810 3,400,000 120,000 1,010 X Best Garments has two producing departments, cloth and garments, and two service departments, personnel and store. The company's budget for April 20X1 is as follows: (Click the icon to view the budget figures.) Best Garments allocates personnel costs on the basis of number of employees and store costs on the basis of square feet. Requirements 1. Allocate personnel and store costs to the producing departments using the direct method. 2. Allocate personnel and store costs to the producing departments using the step-down method. Allocate personnel costs first. Data table Direct department costs Square feet Number of employees Service Departments Personnel $ 175,000 $ 8,700 62 Production Departments Store Cloth Garments 282,000 $2,300,000 $ 4,800 128 40,100 810 3,400,000 120,000 1,010 X
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To allocate personnel and store costs to the producing departments using the direct method we simply ... View the full answer
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
Posted Date:
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