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cost acc .. import.. thanx! ref: Jake's or battery company has two service departments ... Digital Assets has two service departments, restaurant, and Gym. Restaurant
cost acc .. import.. thanx!
ref: Jake's or battery company has two service departments ...
Digital Assets has two service departments, restaurant, and Gym. Restaurant costs are allocated based on number of meals purchased. Gym costs are allocated based on the number of employees. The operating departments are A and B. Data for the current year follows: Department Restaurant Gym A B # Meals n/a 36 532 868 # Employees 29 n/a 90 110 Restaurant costs equal $242,000 and Gym costs equal $176,000. a. Using the direct method, calculate the support department costs allocated to the operating departments, A and B respectively. b. Using the step-down method and ranking first the support department that provides the greatest service to the other service department, what is the allocation of support department costs to the operating departments A and B? c. Why is cost allocation to foreign subsidiaries an important ethical issueStep by Step Solution
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