Question
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
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