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Question 1 - 14 marks 4 5 Q1. Advance Manufacturing Company has two Service Departments Custodial Services and Maintenance and three 6 Production Departments Cutting.

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Question 1 - 14 marks 4 5 Q1. Advance Manufacturing Company has two Service Departments Custodial Services and Maintenance and three 6 Production Departments Cutting. Milling, and Assembly Delta allocates the cost of Custodial Services 2 on the basis of square metres and Maintenance on the basis of labour hours. Budgeted 8 operating data for the year just completed follow 9 10 Service Departments Production Departments 11 Custodial Services Maintenance Cutting Milling Assembly 12 Budgeted costs before allocation $17,000.00 $7,000.00 $75,000.0648,000.0088,000.00 1000 13 Square metres 10000 5000 22000 13000 4 Labour-hours 4000 8000 8000 5 Required: a) Prepare a schedule to allocate Service Department costs to the Production Departments by the direct method, rounding all dollar amounts to the nearest whole dollar. (6 marks) Show anyla Service Departments Production Departments Custodial Maintenance Cutting Milling Assembly Services Budgeted costs before allocation SECTION 4 SECTION 5 SECTION 6 Instructions SECTION 3 SECTION 2 17 18 a) Prepare a schedule to allocate Service Department costs to the Production Departments by the direct method, 19 rounding all dollar amounts to the nearest whole dollar. (6 marks) 20 21 Service Departments Production Departments Show any 22 Services Custodial Maintenance Cutting Milling Assembly 3 Budgeted costs before allocation 4 5 Allocation of Custodial Services: Cutting - Milling: Assembly Allocation of Maintenance: Cutting Milling Assembly Costs after allocation 37 b) Prepare a schedule to allocate Service Department costs to the Production Departments by the step down method 28 allocating Custodial Services first, and rounding all amounts to the nearest whole dollar. (9 marks) Service Departments Production Departments Custodial Maintenance Cutting Milling. Assembly 10 41 Services 42 Budgeted costs before allocation 43 44 Allocation of Custodial Services: 45 Maintenance 46 Cutting 47 Milling 18 Assembly 19 O Allocation of Maintenance: 1 Cutting Milling Assembly Costs after allocation

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