Answered step by step
Verified Expert Solution
Question
1 Approved Answer
LLLLLLLLL QUESTION 3 Ted's Surfboard and Surf ski Store has two service departments, Warehouse and Accounting. The Warehouse Department costs of $500,000 are allocated on
LLLLLLLLL QUESTION 3 Ted's Surfboard and Surf ski Store has two service departments, Warehouse and Accounting. The Warehouse Department costs of $500,000 are allocated on the basis of budgeted warehouse hours. Accounting Department costs of $350,000 are allocated based on the number of transactions in each department. The costs of the operating departments Surfboard and Surf ski are $450,000 and $200,000, respectively. Data on budgeted warehouse-hours and number of transactions are as follows: Production Departments Surfboards Surf Skis Support Depchments Warehouse Accounting Department Department $500,000 $350,000 1,000 1.500 NA Budgeted costs Budgeted warehouse-hours Number of transactions $450,000 2,000 NA $200,000 1,500 1,200 900 Using the direct method how much of Accounting Department costs is allocated to Surf Skis ? Do not use commas when you present your answer e.g. write as $1000 not $1,000. Round to the nearest whole dollar
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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