Question
Craylon Corp has two service departments, S1 and S2, and two operating departments, O1 and O2. The data for April were as follows: Services provided
Craylon Corp has two service departments, S1 and S2, and two operating departments, O1 and O2.
The data for April were as follows:
|
|
| Services provided to: | |||
| Activity | Costs | S1 | S2 | O1 | O2 |
| S1 | $100,000 |
| 10% | 40% | 50% |
| S2 | $80,000 | 20% |
| 55% | 25% |
|
| Fixed Costs |
|
|
|
|
| O1 | $400,000 |
|
|
|
|
| O2 | $500,000 |
|
|
|
|
Determine total costs for each department using the reciprocal method both iteratively and algebraically.
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The Psychology Of People In Organisations
Authors: Angela Mansi, Melanie Ashleigh
1st Edition
0273755765, 9780273755760
