Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please assist. Monty Manufacturing produces wooden outdoor furniture. Monty uses the step-down method to allocate service department costs to the production departments. There are two

Please assist.

image text in transcribedimage text in transcribed
Monty Manufacturing produces wooden outdoor furniture. Monty uses the step-down method to allocate service department costs to the production departments. There are two service departments: administration and custodial services, and two production departments: cutting and assembly. Allocates administration costs first followed by custodial services costs. Administration costs are allocated based on labour hours, and custodial services costs are allocated based on space occupied. Production Departments Administration Custodial Services Cutting Assembly Direct costs $149,500 $99,600 $348,600 $746,500 Labour hours 11,900 10,900 28,300 45,100 Space occupied (m2) 5,200 5,200 19,440 29,430 # units produced 53,000 87,300 Allocate the administration costs to the production departments. (Round intermediate calculations to 6 decimal places, e.g. 1.246873 and final answers to 2 decimal places, e.g. 15.25.) Production Departments Custodial Services Cutting Assembly Allocation of administration cost $ Allocate the custodial services costs to the production departments. (Round intermediate calculations to 6 decimal places, e.g. 1.246873 and final answers to 2 decimal places, e.g. 15.25.) Production Departments Cutting Assembly Allocation of custodial services costsCalculate the total costs (direct plus allocated) for each production department. ( Round answers to 2 decimal places, e.g. 15.25.) Production Departments Cutting Assembly Total costs Calculate a cost per unit produced for cutting and assembly. ( Round answers to 2 decimal places, e.g. 15.25.) Production Departments Cutting Assembly Cost per unit $

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

Survey Of Accounting

Authors: Thomas Edmonds, Philip Olds, Frances McNair, Bor-Yi Tsay

1st Edition

0073526770, 9780073526775

More Books

Students also viewed these Accounting questions

Question

Define the term strategic planning.

Answered: 1 week ago

Question

Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago