Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Reeve Ltd Manufacturing Company Ltd has two production departments (Assembly and Finishing) and two support departments (Repairs and Engineering). The usage of the two

The Reeve Ltd Manufacturing Company Ltd has two production departments (Assembly and Finishing) and two support departments (Repairs and Engineering). The usage of the two support departments in 20X2 is as follows:

Service provided by: Service provided to:
Repairs Engineering Assembly Finishing
Repairs - 10% 60% 30%
Engineering 20% - 40% 40%

The budgeted costs in the support departments of 20X2 were as follows:

Repairs $90,000

Engineering $50,000

Using the reciprocal method, what is the amount of Repairs Department cost allocated to the Assembly Department?

A.

$61,224

B.

$61,977

C.

$102,041

D.

$59,296

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_2

Step: 3

blur-text-image_3

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

Software Engineering Reviews And Audits

Authors: Boyd L. Summers

1st Edition

143985145X, 978-1439851456

More Books

Students also viewed these Accounting questions

Question

2. What are your challenges in the creative process?

Answered: 1 week ago