Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Logan Products has two production departments-assembly and finishing. These are supported by two service departmentssourcing (purchasing and handling of materials and human resources) and operations

image text in transcribed
image text in transcribed
Logan Products has two production departments-assembly and finishing. These are supported by two service departmentssourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Total Labor Hours Used by Departments Sourcing Operations Assembly Finishing 20,000 40,000 60,000 10,000 60,000 50,000 Sourcing Operations The costs incurred in the plant are as follows: Departmental Departments Costs Sourcing $ 204,000 Operations 270,000 Assembly 436,000 Finishing 281,000 Total $1,191,000 Required: Use four decimal places (e9.333333%) in your calculation of percentages. 1. What are the costs allocated to the two production departments using (a) the direct method. (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first), and (c) the reciprocal method? 2 What are the total costs in the production departments after allocation? Roy 1 of 1 Nord Required: Use four decimal places (eg.33 3333%) in your calculation of percentages 1. What are the costs allocated to the two production departments using (a) the direct method. (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first), and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answer to nearest whole dollar amount.) Total Service Dept. Cost Allocated Total Production a Direct Method Assembly Finishing Stop Method Assembly Finishing c Reciprocal Method Assembly Finishing Prev 1 of 1 18 Nord e

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2021

Authors: Bernard J. Bieg, Judith A. Toland

31st Edition

0357358287, 9780357358283

More Books

Students also viewed these Accounting questions

Question

How would you describe Mark Zuckerberg as a team leader?

Answered: 1 week ago