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1. Skiphoop manufactures two types of piggy banks, a kangaroo-shaped piggy bank and a platypus-shaped piggy bank, in two separate production departments. The plant is
1. Skiphoop manufactures two types of piggy banks, a kangaroo-shaped piggy bank and a platypus-shaped piggy bank, in two separate production departments. The plant is highly automated and contains only two other support departments: (1) engineering and design (ED); and (2) information systems (IS). Skiphoop allocates support department costs according to estimated service use. Information for the year just ended was as follows.
Only C please
Support Production ED IS Kangaroo-shapedPlatvpus-shaped Direct costs $2,700 $8,000 $10,000 $20,000 Service used ED IS 40% 30% 8,000 50% 50% 4,000 0 10% 0 20% Production volume Required: Using the information provided: a) Determine the total cost of operations for each production department under the direct b) Determine the total cost of operations for each production department under the step-down c) Determine the total cost of operations for each production department under the reciprocal method. method. methodStep by Step Solution
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