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Please type the complete solutions in a table and typed, not handwritten. Problems 1. Hoolloo manufactures two types of piggy banks, a kangaroo-shaped piggy bank
Please type the complete solutions in a table and typed, not handwritten.
Problems 1. Hoolloo manufactures two types of piggy banks, a kangaroo-shaped piggy bank and a platypus-shaped piggy bank, in two separate production departments. The plant is highly automated and contains only two other support departments: (1) engineering and design (ED); and (2) information systems (IS). Hoolloo allocates support department costs according to estimated service use. Information for the year just ended was as follows Support ED IS $6,200 $9,500 Production Kangaroo-shaped Platypus-shaped $15,000 $22,000 Direct costs Service used ED IS 0 10% 50% 20% 40% 60% 20% 0 Required: Using the information provided: a) Determine the total cost of operations for each production department under the direct method. b) Determine the total cost of operations for each production department under the step-down method. c) Determine the total cost of operations for each production department under the reciprocal methodStep by Step Solution
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