Question
Operating Operating Support Support Power Maint Fabrication Finishing Total Fixed cost Power Power 600 1,200 4,800 2,900 9,500 $1,500,000 Maint. 1,700 200 1,600 1,500 5,000
Operating Operating Support Support Power Maint Fabrication Finishing Total Fixed cost Power Power 600 1,200 4,800 2,900 9,500 $1,500,000 Maint. 1,700 200 1,600 1,500 5,000 $300,000
| Operating | Operating | Support | Support | |||
| Power | Maint | Fabrication | Finishing | Total | Fixed cost Power | |
| Power | 600 | 1,200 | 4,800 | 2,900 | 9,500 | $1,500,000 |
| Maint. | 1,700 | 200 | 1,600 | 1,500 | 5,000 | $300,000 |
Using the long-term average support units provided and the fixed costs, allocate the support department costs to the production departments using:
a) The direct method
b) The step method with power first and then maintenance
c) The step method with maintenance first and then power
d) The reciprocal method
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Comprehensive Assurance & Systems Tool An Integrated Practice Set
Authors: Laura R Ingraham, J Greg Jenkins
3rd Edition
0133251969, 9780133251968
