Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 8 Thai's Bicycles and Scooters Store has two service departments, Warehouse and Cleaning. The Warehouse Department costs of $450,000 are allocated on the basis
QUESTION 8 Thai's Bicycles and Scooters Store has two service departments, Warehouse and Cleaning. The Warehouse Department costs of $450,000 are allocated on the basis of budgeted warehouse hours. Cleaning Department costs of $150,000 are allocated based on the number of labour hours in each department. The costs of the operating departments Bicycles and Scooters are $350,000 and $300,000, respectively. Data on budgeted warehouse-hours and number of labour hours are as follows: Production Departments Bicycles Scooters $350,000 $300,000 1,000 1,500 800 1,000 Support Departments Warehouse Cleaning Department Department $450,000 $150,000 NA 500 200 NA Budgeted costs Budgeted warehouse-hours Number of labour hours What amount is allocated from Warehouse to Bicycles using the direct method? What amount is allocated from Cleaning to Bicycles using the step down method when Warehouse is allocated first? Do not include commas in your answer. Present $1,000 as $1000
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