Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Warren Ltd. has two production departments. Building A and Building B, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the
Warren Ltd. has two production departments. Building A and Building B, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of June follow: Proportion of Services Used by Maintenance Cafeteria Building A Building B Department Building A Building B Maintenance Cafeteria Direct Costs $510.000 325.000 213.000 143.000 0.2 0.5 0.2 0.3 0.2 0.6 Required: (a) Use the step method to allocate the service costs, the order of allocation starts with Maintenance. (Do not round intermediate calculations. Round your answers to the nearest dollar amount. Leave no cells blank - be certain to enter "O" wherever required. Amounts to be deducted should be indicated with a minus sign. Omit the "S" sign in your response.) To Maintenance Cafeteria Building A Building B From Service department costs Maintenance $ S I Cafeteria Total Costs S (b) use the step method to allocate the service costs. the allocations are made in the reverse order (starting with Cafeteria), (Do not round intermediate calculations. Round your answers to the nearest dollar amount. Leave no cells blank - be certain to enter '0" wherever required. Amounts to be deducted should be indicated with a minus sign. Omit the "S" sign in your response.) TO Cafeteria Maintenance Building A Building e From Service department costs $ 3 S Cafeteria Maintenance Total Costs Maintenance Cafeteria Building A Building B Department Building A Building B Maintenance Cafeteria Direct Costs $510.000 325.000 213.000 143,000 0.2 0.6 0.5 0.2 0.3 0.2 Required: (a) Use the step method to allocate the service costs, the order of allocation starts with Maintenance. (Do not round intermediate calculations. Round your answers to the nearest dollar amount. Leave no cells blank - be certain to enter "0" wherever required. Amounts to be deducted should be indicated with a minus sign. Omit the "S" sign in your response.) TO Cafeteria Maintenance $ Building A From Service department costs Maintenance Building B $ $ $ Cafeteria Total Costs 6 $ (b) Use the step method to allocate the service costs, the allocations are made in the reverse order (starting with Cafeteria). (Do not round intermediate calculations. Round your answers to the nearest dollar amount. Leave no cells blank - be certain to enter "O" wherever required. Amounts to be deducted should be indicated with a minus sign. Omit the "S" sign in your response.) To From Cafeteria Maintenance Building A Building B $ Cafeteria Naintenance Tota Costs 5 S
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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