Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carolina Stoneware Company manufactures pottery in two production departments, P1 and P2. The production departments receive services from four support departments, S1, S2, S3 and

image text in transcribed
Carolina Stoneware Company manufactures pottery in two production departments, P1 and P2. The production departments receive services from four support departments, S1, S2, S3 and S4, which also provide some services to each other. The costs of operating the support departments for last year are as follows: Dept. S1 Dept. S2 Dept. S3 Dept. S4 Dept. Costs $12,000 15,000 10,000 25,000 The percentages of service provided by the support departments to other departments are: SA p1 From S1 10% S3 10% 30% 5% 10% 20% 10% 10% P2 45% 15% 20% 40% 30% 35% 30% 20% 20% 10% 15% 15% REQUIREMENTS: a. Develop the equations needed to allocate support department costs to other departments using the reciprocal method. b. Using excel, calculate the allocation of the support department costs to other departments and the total amount allocated to each production department. Since you are not given the direct overhead in the production departments, you are not able to calculate the total overhead for each department

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 23 - Internal Control

Authors: Kate Mooney

1st Edition

0071719458, 9780071719452

More Books

Students also viewed these Accounting questions