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Problem 6-8 Paver Electronics is a manufacturer of data storage devices. Paver consists of two service departments (maintenance and computing) and two production departments (assembly
Problem 6-8 Paver Electronics is a manufacturer of data storage devices. Paver consists of two service departments (maintenance and computing) and two production departments (assembly and testing). Maintenance costs are allocated on the basis of square footage occupied, and computing costs are allocated on the basis of the number of computer terminals. The following data relate to allocations of service department costs: Assembly Testing Maintenance $555,000 Computing $1,042,000 Service department costs Square footage Terminals 129,360 37 24,640 63 Allocate the service department costs to production departments using the direct method. (Round allocation percentage to 2 decimal places, e.g. 15.36% and final answers to 0 decimal places, e.g. 15,252.) Allocation of cost Service depts. Assembly Testing Maintenance $ $ Computing Total
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