Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Galaxy Company has two service departments (Power and maintenance) and two production departments (Machinery and Assembly). Additional information is given below: Kilowatt Maintenance Cost

image text in transcribed

The Galaxy Company has two service departments (Power and maintenance) and two production departments (Machinery and Assembly). Additional information is given below: Kilowatt Maintenance Cost Hours Hours Machinery 450,000 39,000 1,600 Assembly 210.000 15,000 2,400 Power 135,000 5,500 1,000 Maintenance 90,000 6,000 600 Costs of Power department are allocated on the basis of Kilowatt Hours. The Costs of Maintenance department are allocated on the basis of Maintenance Hours. Total machine hours worked in Machinery Department is 2,500 and total direct labor hours worked in Assembly department is 10,000. Direct costs of Job order 501 are given as: Direct Material Cost 400,000 Direct Labor Cost 300,000 Job order 501 is processed 400 machine hours in Machinery Department and 2.500 labor hours in Assembly department. a) Allocate the total costs of the service departments to the producing departments by using direct allocation method. b) Calculate total cost of Job order 501

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

Information Systems Control And Audit

Authors: Ron Weber

1st Edition

0139478701, 978-0139478703

More Books

Students also viewed these Accounting questions