Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Geonosis Company has two products Product 1 ts manufactured entirely in Department Product 2 is manufactured entirely in Department To produce these two products,
The Geonosis Company has two products Product 1 ts manufactured entirely in Department Product 2 is manufactured entirely in Department To produce these two products, the Geonosis Company has two support departments A (a materials-handling (MH) department, and 8 (a power generating (PG) department) An analysis of the work done by Departments A and B in a typical period follows Used By Supplied By B Y 200 500 300 125 375 750 The work done in Department Ais monsured by the direct labor hours of materials-handling time. The work done in Department is measured by the kilowatt-hours of power. The budgeted costs of the support departments for the coming your are as follows Cont Description Dept A (MH) Dept B (PO) Variable indirect Costs 5150,000 $15,000 Supervision $45,000 $25,000 Depreciation $15.000 350.000 Total $210.000 590.000 - Power Material Costs Handling Costs The budgeted costs of the operating departments for the coming year are $1,250,000 for Department and $950,000 for Department Supervision costs are solory costs Depreciation in department in the straightno doprociation of power generation equipment in its 19th year of an estimated 25-year useful life, it is old, but well maintained equipment The allocation of Department A support costs to operating Department X using the direct method is 5131.250 1.878 750 $67.500 d. 822.600
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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