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The following is a summary of the service-support and operations departmnets for Clear Company: ACCT Purchasing Assembly Packaging Total Deprtmental Costs $ 6,200 $3,000 $
The following is a summary of the service-support and operations departmnets for Clear Company: ACCT Purchasing Assembly Packaging Total Deprtmental Costs $ 6,200 $3,000 $ 25,000 $ 30,000 $ 64,200 The total costs of the support deparments (ACCT and PUR) are allocated to the production departments (Assembly and Packaging) using a single rate based on the following: Accounitng (ACCT): Purchasing (PUR): Number of ACCT hours worked by department Number of employees supported by department Data on the bases, by department, are given as follows: Accounting Purchasing Department Hours Used # of Emply Assembly 5,700 200 Packaging 2,300 175 ACCT 25 Purchasing 2,000 The following are the reciprocal equations: Accounting = $ 6,200 +.0625 Purchasing Purchasing = $3,000 + 20 Accounting Required: Allocate the Support Department Costs to the Production Department using the Reciprocal-linear equation Allocation Method
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