answer question 46

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yo 12-45 Direct Me Kazuo Piano Co addition, there are The company purcha for sale in der The elect the number of su irect Method for Service Department Allocation Piano Company has two producing departments, traditional pianos and electronic pianos. In There are two service departments, building services and materials receiving and handling. any purchases a variety of component parts from which the departments assemble pianos le in domestic and international markets. electronic pianos division is highly automated. The manufacturing costs depend primarily on vr of subcomponents in each piano. In contrast, the traditional pianos division relies primarily labor force to hand-assemble pianos. Its costs depend on direct-labor hours. costs of building services depend primarily on the square footage occupied. The costs of Els receiving and handling depend primarily on the total number of components handled. Dianos M1 and M2 are produced in the traditional pianos department, and El and E2 are produced ctronic pianos department. Data about these products follow: on a large labor forca materials receivi in the electronic pianos Number of Components 110 90 100 Direct- Labor Hours 3.0 Direct Materials Cost $740 860 630 910 M2 E2 200 1.0 Budget figures for 20X7 include the following: Building Service $1,500,000 Materials Receiving and Handling $1,200,000 Traditional Pianos $6,800,000 Electronic Pianos $5,480,000 5,000 Direct department costs (excluding direct materials cost) Square footage occupied Number of final pianos produced Average number of components per piano Direct-labor hours 50,000 8,000 100 30,000 25,000 10,000 160 8,000 1. Allocate the costs of the service departments using the direct method. 2. Using the results of number 1, compute the cost per direct labor hour in the traditional pianos department and the cost per component in the electronic pianos department. 5. Using the results of number 2, compute the cost per unit of product for pianos M1, M2, E1, and E2. 12-46 Step-Down Method for Service Department Allocation Refer to the data in Problem 12-45. Allocate the costs of the service departments using the step-down method. I n the results of number compute the cost per direct labor hour in the traditional pianos tment and the cost per component in the electronic pianos department. Sing the results of number 2. compute the cost per unit of product for pianos MI, M2, E1, and E2