5.1

Luestion 5.1 (Total: 24 marks) Micro Brew Manufacturing Company has two Service Departments-Custodlal Services and Maintenance-and three Production Departments-Brewing, Bottiling, and Packaging. Micro Brew allocates the cost of Custodial Services on the basis of square metres and Maintenance on the basis of labour hours. Budgeted operating data for the year just completed follow: Required: 1. Prepare a schedule, which allocates Service Department costs to the Production Departments by the direct method. 2. Prepare a schedule, which allocates Service Department costs to the Production Departments by the step-down method, allocating Custodial Services first