Question
16.) A firm has two service departments (A and B) and two production departments (X and Y). The firm allocates service department cost using the
16.) A firm has two service departments (A and B) and two production departments (X and Y). The firm allocates service department cost using the step-down method. In the step-down process, Department A is first, and Department B is second.
Service Department A's services are consumed as follows.
- 20% used by Service Department B. - 20% used by Production Department X. - 60% used by Production Department Y.
Service Department B's services are consumed as follows.
- 20% used by Service Department A. - 60% used by Production Department X. - 20% used by Production Department Y
For the period, Service Department A has $586,944 costs and Service Department B has $818,341 costs.
What is Department B's allocation to Department X (round final answer to nearest cent if necessary)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started