Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm has two service departments (A and B) and two production departments (X and Y). The firm allocates service department cost using the direct

A firm has two service departments (A and B) and two production departments (X and Y). The firm allocates service department cost using the direct method.

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 $945,380 costs, Service Department B has $798,222 costs, and Production Department Y has $974,110 costs for the period.

What is Department Y's total cost after both service department costs have been allocated (round final answer to nearest cent if necessary)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions