Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Manzano Bank has two operating departments (Branches and Electronic) and three service departments Processing, Administration, and Maintenance). During November, the following costs and service department

image text in transcribed

image text in transcribed

image text in transcribed

Manzano Bank has two operating departments (Branches and Electronic) and three service departments Processing, Administration, and Maintenance). During November, the following costs and service department usage ratios were recorded Using Department Supplying Department Processing Administration Maintenance Direct cost ing Administration Msintenance Bra 0 Branches Electronic Administration 50% Maintenance 10% 60% 20% 40% 40% 50% 10% 20% $120,000 $751,000 $332,000 $6200,000 $2 300,000 The cost accountant at Manzano Bank estimates that the cost structures in their departments are as Processing Administration Maintenance Branches Vaniable costs s 81,000 $240,000 39 000 511,000 $179,000 153 000 $2.800.000 3 400.000 1.150 000 1,150 000 Fixed costs Total costs Avcidable fxed costs s 14 000 $401 000 $120,000$ $ 120,000 $751 000 332.000 6.200000 2300 000 s2 135 000 s 940 000 132 000 $0200,000 2 300 000 000 $332,000 Required ura Denartment what is the maxmum they can pay an outside

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

Auditing Theory And Practice

Authors: C. William Thomas, Bart Ward, Emerson Henke

3rd Edition

0534920748, 978-0534920746

More Books

Students also viewed these Accounting questions

Question

Identify four applications of HRM to healthcare organizations.

Answered: 1 week ago