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Can someone help me solve this and could you explain each step and provide background information to help solve this? Ch 15 In-Class Problem Rogers
Can someone help me solve this and could you explain each step and provide background information to help solve this?
Ch 15 In-Class Problem Rogers Corporation has two production departments, Assembly and Finishing and three service departments, Personnel, Maintenance and Cafeteria. Data relevant to Rogers are: Personnel Maintenance Cafeteria Assembly Finishing Departmental costs $500,000 $420,000 $200,000 $150,000 $380,000 # of new employees 2 4 6 70 20 Maintenance hrs 100 100 200 800 200 Total # of employees 20 40 80 120 120 Direct labor hours 3,000 17,000 Machine hours 15,000 4,000 Assembly and Finishing worked on two jobs during the month: Job 100 and 101. Costs are allocated to jobs based on machine hours in assembly and labor hours in Finishing. The machine and labor hours required for the two jobs were as follows: Assembly Finishing Job 100 Labor Hours 20 80 Machine Hours 100 20 Job 101 Labor Hours 10 90 Machine Hours 50 10 Required: Determine the amount of departmental costs to be allocated to Jobs 100 and 101, using both the direct- and step-methods of cost allocation. For the step method, allocate the departments with the most costs first. 10-1Step by Step Solution
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