Consider the following data pertaining to two support and two line departments. Required: Use the reciprocal method
Question:
Consider the following data pertaining to two support and two line departments.
Required:
Use the reciprocal method to determine the costs allocated to P1 andP2.
Transcribed Image Text:
Department 1 Department 2 Department 3 Total Average Planned Usage (hours) 2,000 2,000 1,000 5,000 Actual Usagein hours) Api May June 2,000 2,000 2,000 1,500 2,500 2,000 700 700 800 4,200 5,200 4,800
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The reciprocal method considers all interactions among support departments cost pools As e...View the full answer
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Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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