Selecting an Allocation Base for Service Costs Winstead, Inc , is looking for an appropriate allocation base to allocate personnel costs totaling $5,000,000 Service department costs are allocated to three production departments Assembly, Sanding, and Finishing Management is considering two allocation bases Required 1 Calculate the amount of personnel department costs allocated to production departments using each allocation base 2 Which allocation base do you think is most reasonable Why 42 Selecting an Allocation Base for Service Costs Winstead, Inc , is looking for an appropriate allocation base to allocate personnel costs totaling $5,000,000 Service department costs are allocated to three production departments Assembly, Sanding, and Finishing Management is considering two allocation bases Required 1 Calculate the amount of personnel department costs allocated to production departments using each allocation base 2 Which allocation base do you think is most reasonable Why

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 19, 2024

Selecting an Allocation Base for Service Costs. Winstead, Inc., is looking for an appropriate allocation base to allocate personnel costs totaling $5,000,000. Service department costs

Selecting an Allocation Base for Service Costs. Winstead, Inc., is looking for an appropriate allocation base to allocate personnel costs totaling $5,000,000. Service department costs are allocated to three production departments: Assembly, Sanding, and Finishing. Management is considering two allocation bases.

Required:

1- Calculate the amount of personnel department costs allocated to production departments using each allocation base.

2- Which allocation base do you think is most reasonable? Why?

image text in transcribed

42. Selecting an Allocation Base for Service Costs. Winstead, Inc., is looking for an appropriate allocation base to allocate personnel costs totaling $5,000,000. Service department costs are allocated to three production departments: Assembly, Sanding, and Finishing. Management is considering two allocation bases. Required: 1. Calculate the amount of personnel department costs allocated to production departments using each allocation base. 2. Which allocation base do you think is most reasonable? Why