Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3 Pearl Manufacturing produces wooden outdoor furniture. Pearl uses the step-down method to allocate service department costs to the production departments. There are two

image text in transcribed

Question 3 Pearl Manufacturing produces wooden outdoor furniture. Pearl uses the step-down method to allocate service department costs to the production departments. There are two service departments: administration and custodial services, and two production departments: cutting and assembly. Allocates administration costs first followed by custodial services costs. Administration costs are allocated based on labour hours, and custodial services costs are allocated based on space Dccupied Direct costs Labour hours Space occupled (m2) # units produced Administration $174,100 12,900 4,800 Custodial Services $96,100 9,400 4,800 Production Departments Cutting Assembly $342,500 5696,100 28,300 46,900 18,010 31,840 54,500 90,500 * Question 3 Your answer is correct. Allocate the administration costs to the production departments. (Round intermediate calculations to 6 decimal places, e.g. 1.246873 and final answers to 2 decimal places, e.g. 15.25.) Production Departments Custodial Services Cutting Assembly Allocation of administration cost 19344.44 $158239.13 56516.43 Attempts: 2 of 3 used Question 3 x Your answer is incorrect. Try again. Allocate the custodial services costs to the production departments. (Round intermediate calculations to 6 decimal places, e.g. 1.246873 and final answers to 2 decimal places, e.g. 15.25.) Production Departments Cutting Assembly Allocation of custodial services costs 31669.92 55989.46 Attempts: 2 of 3 used * Question 3 The parts of this question must be completed in order. This part will be available when you complete the part above. Question 3 The parts of this question must be completed in order. This part will be available when you complete the part above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing

Authors: Thomas D. Hubbard, J. R. Johnson, Steve Johnson, Joel D. Hubbard

6th Edition

0873932609, 9780873932608

More Books

Students also viewed these Accounting questions

Question

=+6. What need does it fulfill?

Answered: 1 week ago

Question

=+8. How can you differentiate your product in their eyes?

Answered: 1 week ago