Question
Q15. The Denim Company has decided to distribute the costs of service departments by the algebraic method. The producing departments are Cutting department and Sewing
Q15.
The Denim Company has decided to distribute the costs of service departments by the algebraic method. The producing departments are Cutting department and Sewing department. The service departments are Maintenance and cafeteria, and monthly data are:
Actual factory overhead
Costs before distribution Services provided by
(Rs.) Maintenance Cafeteria
Cutting department 126,000 40% 50%
Sewing department 87,000 50% 30%
Maintenance department 30,000 --- 20%
Cafeteria 26,400 10% ---
Required:
Total factory overhead of producing department Cutting after distribution of service department costs.
Step 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