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Thank you in advance! :) Exercise 11-33 (Algo) Cost Allocation: Reciprocal Method, Two Service Departments (LO 11-4) During the past month, the following costs were
Thank you in advance! :)
Exercise 11-33 (Algo) Cost Allocation: Reciprocal Method, Two Service Departments (LO 11-4) During the past month, the following costs were incurred in the three production departments and two service departments of Kim & Co.: Administration Supplying Department Administration Factory support Direct cost Using Department Factory Support Fabrication 0.40 0.20 0.10 $1,340,000 $1,740,000 Assembly 0.10 0.20 $ 286,000 Finishing 0.30 0.60 $ 256,000 0.10 $660,000 Required: Allocate service department costs to Fabrication, Assembly, and Finishing using the reciprocal method, and determine the total costs of Fabrication, Assembly, and Finishing after this allocation. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Cost Allocation To: From: Administration Factory Support Fabrication Assembly Finishing Service department costs Administration Factory support Total allocations $ 0 $ 0 $ 0 $ 0 $ 0 Direct costs Total costs $ 0 $ 0 $ 0 $ 0 $ 0Step by Step Solution
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