Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CERCE Corporation USES the direct method to allocate Service department costs to operating departments . The company has two service departments , Administrative and Facilities

image text in transcribed
CERCE Corporation USES the direct method to allocate Service department costs to operating departments . The company has two service departments , Administrative and Facilities , and two operating departments . Assembly and Finishing. SERVICE Department Operating Department Administrative FACILITIES ASSEMBLY Finishing* DEPartmental costs $ 31 , 480 $ 38 , 315 $ 125 , 580 $ 417 , 650 EmployEE hours 3, 5010 1 , 170 25 , 8BE 25 , 8BE SPACE OCCUPIED- - Square FEET 8 , 580 1 , 170 45 , 890 2 . 580 Administrative Department costs are allocated on the basis of EmployEE hours and Facilities Department Costs are allocated on the basis of SPACE Occupied. Required :` Allocate the SERVICE department costs to the operating departments using the direct method . Service Department Operating Department Administrative* Facilities Assembly Finishing Total costs after allocation

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_2

Step: 3

blur-text-image_3

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

Fundamentals of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W Maher

6th edition

1259969479, 1259565408, 978-1259969478

More Books

Students also viewed these Accounting questions

Question

An improvement in the exchange of information in negotiations.

Answered: 1 week ago

Question

1. Effort is important.

Answered: 1 week ago