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can someone answer this question? (CMA, adap ed Problem 17-25 Jacksonville Instrument Company manufactures gauges for construction machinery. The company has Direct and Step-Down two
can someone answer this question?
(CMA, adap ed Problem 17-25 Jacksonville Instrument Company manufactures gauges for construction machinery. The company has Direct and Step-Down two production departments: Machining and Finishing. There are three service departments: Human Methods of Service Resources (HR), Maintenance, and Design. The budgeted costs in Jacksonville Instrument Company's Department Cost Allocatic service departments during the year are as follows: (LO 17-1) 1. Total cost allocated to HR Maintenance Design Finishing $349,056 $ 50.000 $ 80,000 $ 50,000 3. Total cost allocated to Variable 200,000 150,000 300,000 Finishing $340,664 Fixed... $250,000 $230,000 $350,000 Total The usage of these service departments' output during the year just completed is as follows: Provision of Service Output (in hours of service) Provider of Service HR Maintenance Design 500 User of Service HR Maintenance Design Machining Finishing Total 500 4,000 5,000 10,000 500 3,500 4,000 8,000 4,500 1,500 6,000 Required: 1. Use the direct method to allocate Jacksonville Instrument Company's service department costs to its production departments. 2. Determine the proper sequence to use in allocating the firm's service department costs by the step-down method 3. Use the step-down method to allocate the company's service department costs. 4. Build a spreadsheet: Construct an Excel spreadsheet to solve requirements (1) and (3) above. Show how the solution will change if the following information changes: the budgeted vari- able costs in the three departments are $60,000. $70,000, and $55,000, for Human Resources, Maintenance, and Design, respectivelyStep by Step Solution
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