Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company has recorded the following costs for two support departments, property management and quality control department, as well as two production departments, 1 and
A company has recorded the following costs for two support departments, property management and quality control department, as well as two production departments, 1 and 2. During the period, variable costs are ISK 15,000,000 for property management and ISK4,200,000. due to quality control department. Fixed costs are ISK 7,800,000. for real estate supervision and ISK 6,200,000 for the quality control department. The company has kept track of the relative working hours 0 and has presented the following areakdown because of this: ithe support departments for each other as well as the production departments Proportional amount hours Property management Quality control department Production 1 Production 2 Property management 0.1 0.6 0.3 Quality control department 0.25 0.35 0.4 You are supposed to nd the total variable costs from property management divided into production department 2 if you start dividing the costs of the quality control department according to the step-down method between property management and the two production departments. The total variable cost that is then divided by property management in production department 2 is: O 5 ,3 50,000 C) 4 ,2 00,000 C) 7,300,000 @ 4 ,8 50,000
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