Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show ALL work and accurate answers. Thank You. Chekley Manufacturing has two production departments (Machining and Assembly) They have two service departments that provide
Please show ALL work and accurate answers. Thank You.
Chekley Manufacturing has two production departments (Machining and Assembly) They have two service departments that provide services to each other and to production (Plant Maintenance and IT) Chekley believes Plant Maintenance (PM) should be allocated based on square footage and IT should be allocated based on computer hours. Chekley allocates Plant Maintenance first when allocating using the step method. You have the following additional information: Total manufacturing costs $ 350,000 250,000 $2,500,000 $ 2,000,000 $ 5,100,000 COSTS Plant maintenance Information technology Machining Assembly Computer Square Feet hours Plant maintenance Information system:s Machining Assembly 4,000.00 8,000.00 2,000.00 4,000.00 12,000.00 24,000.00 00 8,000.00 6,000. 24,000.00 44,000.00 Problem A 1. Under the direct method, what percentage of PM should be allocated to Machining? 2. Under the direct method, what percentage of PM should be allocated to Assembly? 3. Under the direct method, how much of the total allocable cost attributable to PM should be allocated to Machinin 4. Under the direct method, how much of the total allocable cost attributable to PM should be allocated to Assembly 5. Under the direct method, what percentage of IT should be allocated to Machining? 6. Under the direct method, what percentage of IT should be allocated to Assembly? 7. Under the direct method, how much of the total allocable cost attributable to IT should be allocated to Machining 8. Under the direct method, how much of the total allocable cost attributable to IT should be allocated to AssemblyStep 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