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Dear professor, Please help to solve this problem. Step method rather difficult for me Grateful for your rationale and explanation, SBI Company has two service
Dear professor,
Please help to solve this problem. Step method rather difficult for me
Grateful for your rationale and explanation,
SBI Company has two service department (51 and 52) and two producing departments (A and B) - Department 51 serves Departmen 52 , A and B in the following percentages respectively: 15% , 25% and 60% - Department 52 serves Department 51, A and B in the following percentages respectively : 0% , 70% and 30% -Direct department costs for 51 , 52 , A and B are $200,000 ; $16,000 ; $210,000 and $185,000 respectively. If SBI uses the step method of allocating service department costs beginning with Department 51 , what is the total amount of cost that will be allocated from 52 to Department A? $Step by Step Solution
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