laues Assignments Exams Surveys Groups Chapter 17 Assignment

laues Assignments& Exams Surveys Groups Chapter 17 Assignment- Quiz asey Follmer: Atte departments. Using Department Service Dept Maintenance Technology Machining Finishing Maintenance Technology 4,000 32,000 14,000 2,000 4,000 2,000 The Technology Department has costs of $720,000. The Maintenance Department has costs of $108,000 ebs Assume X Company uses the direct method of cost allocation, compute the amount of multiply 2 the Maintenance Department\'s cost that allocated to the Finishing Department. If you want to compute (2/9) 63000, times 63000 and then divide by 9. DO NOT multiply s$63,000 by .22, Do not enter any dolilar signs or commas. For example enter $20,000 as 20000 Save Save All Responses Go to Submit Quiz Et

Solution

Answer

Using Departments:

Maintenance Department

Technology Department

Machining

4000

14000

Finishing

32000

2000

Total

36000

16000

Total cost

$        1,08,000.00

$     7,20,000.00

Maintenance Department

Technology Department

Machining Department

Finishing Department

Cost to be allocated

$        1,08,000.00

$     7,20,000.00

Allocation of Technology Department

$                           -  

$   (7,20,000.00)

$      6,30,000.00

$         90,000.00

Allocation of Maintenance Department

$      (1,08,000.00)

$                        -  

$          12,000.00

$         96,000.00

Cost after allocation

$                           -  

$                        -  

$      6,42,000.00

$      1,86,000.00

With Formula showing:

Maintenance Department

Technology Department

Machining Department

Finishing Department

Cost to be allocated

$        1,08,000.00

$     7,20,000.00

Allocation of Technology Department

0

-720000

=720000*(14000/16000)

=720000*(2000/16000)

Allocation of Maintenance Department

-108000

0

=108000*(4000/36000)

=108000*(32000/36000)

Allocation of Maintenance Department to Finishing Department = $ 96,000 [108000*(32000/36000)]

Using Departments:	Maintenance Department	Technology Department
Machining	4000	14000
Finishing	32000	2000
Total	36000	16000
Total cost	$        1,08,000.00	$     7,20,000.00