Question
Company Y has two service departments, DA and DB, and two production departments, P1 and P2. Services provided to: Departments Costs DA $100,000 DB $50,000
Company Y has two service departments, DA and DB, and two production departments, P1 and P2.
|
| Services provided to: | |||
| Departments Costs | DA $100,000 | DB $50,000 | P1 | P2 |
|
|
| 15% | 35 | 50 |
|
| 20% |
| 55 | 25 |
Required:
Allocate reciprocated Costs of DA and DB to departments.
| A. | DA ($17,010; $39,691; $56,701) and DB ($13,402; 36,855.5; $16,752.5) | |
| B. | DA ($15,773; $36,404; $32,577) DB ($15,152; 41,629; $18,943) | |
| C. | DA ($16,500; $35,000; $50,000) DB ($10,000; $27,500; $12,500) | |
| D. | None of them |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
