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ABC company operates three service departments, power, maintenance, and pensonnel along with two production departments, assembly and packaging. The costs in the service departments are
ABC company operates three service departments, power, maintenance, and pensonnel along with two production departments, assembly and packaging. The costs in the service departments are allocated using the following activities: Power - allocated using square feet occupied Maintenance - allocated using maintenance hours Personnel - allocated using number of employees In the second stage, departmental overhead rates for the two production departments are calculated using machine hours as the cost driver for the assembly department and direct labor hours as the cost driver for the packaging department. Information for the three service departments is given below: Information for the two production departments is given below: ABC Company started and completed job #32-A during the most recent month. Information about-job #32-A appears below: In answering this question, assume, the following: 1) Service department costs are allocated to the production departments using the direct allocation method. 2) 820 units from Job #32-A were sold at a selling price of $250 per unit. Calculate the gross profit earned from the sale of the 820 units from Job #32-A
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