Question
During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.: Using DepartmentSupplying DepartmentAdministrationFactory
During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.:
Using DepartmentSupplying DepartmentAdministrationFactory SupportFabricationAssemblyFinishingAdministration0.500.200.100.20Factory support0.150.150.300.40Direct cost$630,000$1,325,000$1,710,000$283,000$253,000
Required:
Allocate service department costs to Fabrication, Assembly, and Finishing using the reciprocal method, and determine the total costs of Fabrication, Assembly, and Finishing after this allocation.(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)
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