Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Dartmouth Corporation has two production departments, Cutting (C) and Assembly (A), and three service departments, Supervision (S), Maintenance (M), and Personnel (P). The following data
Dartmouth Corporation has two production departments, Cutting (C) and Assembly (A), and three service departments, Supervision (S), Maintenance (M), and Personnel (P). The following data relates to usage of service department resources by the various departments associated with production DARTMOUTH CORPORATION INFORMATION ABOUT USAGE OF SERVICE DEPARTMENT COSTS USED BY VARIOUS DEPARTMENTS Services Provided To Direct Dept.Costs 890| 10% | 40% | 42% 9%| 55%| 31% -| 30% | 50% S 50,000 120,000 | 80,000| 200,000! 350,000 5% 10% | 10%| 6. Using the step method, what is the proper order for allocating service department costs if the order is determined by the amount of service department resources provided to other service departments? (a) P, M, S (b) P, S, M. (c) S, P, M. (d) M, S, P Ignoring your answer to Question 6 above, assume that the service departments should be allocated in the following order: M, P, S. What is the amount of personnel costs that would be allocated to the cutting department if Dartmouth uses the step method to allocate the costs of service departments? (a) $26,667. (b) $50,444 (c) $24,000. (d) S30,267. 7
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started