=+The work done in Department A is measured by the direct labour-hours of materials-handling time. The work

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=+The work done in Department A is measured by the direct labour-hours of materials-handling time. The work done in Department B is measured by the kilowatt-hours of power. The budgeted costs of the support departments for the coming year are:

Department A

(Materials handling)

Department B

(Power generation)

Variable indirect labour and indirect materials costs $70 000 $10 000 Supervision 10 000 10 000 Depreciation 20 000 20 000 100 000 40 000

+ Power costs + Materials-handling costs The budgeted costs of the operating departments for the coming year are $1500000 for Department X and $800000 for Department Y.

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Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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