Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Pingleton Company has four departments in its factory with two service departments, S1 and S2, and two production departments Assembly and Packaging. The current

The Pingleton Company has four departments in its factory with two service departments, S1 and S2, and two production departments Assembly and Packaging. The current costs of each department are:

Service Departments

Production Departments

S1

$350 000

Assembly

$523 000

S2

$208 000

Packaging

$416 000

The distribution and consumption of services is given in the following table:

Services provided to:

S1

S2

Assembly

Packaging

Services provided by:

S1

-

25%

45%

30%

S2

15%

-

50%

35%

Using the direct method how much overhead cost will be allocated from S2 to Packaging:

A.

$72,800

B.

$104,000

C.

$85,647

D.

$122,353

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

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

5th Edition

126078035X, 978-1260780352

More Books

Students also viewed these Accounting questions

Question

Annoyance about a statement that has been made by somebody

Answered: 1 week ago

Question

Self-confidence

Answered: 1 week ago