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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
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 systerns (IS). Hoolloo allocates support department costs according to estimated service use. Information for the year just ended was as follows Support ED IS 56,200 $9,500 Production Kangaroo-shaped Platypus-shaped $15.000 $22.000 Direct costs Service used ED IS 0 TOM 0 30% 2016 20% 404 60% 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 method
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