Sh52 Jennifer Hansen is the manager of American Autos. American Autos provides three types of services, Sales, Repairs, and Rebuilds.Jennifer needs to provide a profit analysis to the CEO at the end of the current fiscal year so the pricing and marketing strategies canbe adjusted as needed. She has gathered the following information for the company.Cost# of employeesMaint HoursHR HoursRevenueMarketing$217,000Sales$999,000550100Support DepartmentsMaintenance$328,000Repairs$1,309,000730025HR$49,000Rebuilds$2,101,000225180Sales$356,000128001,200Operating UnitsRepairs$860,000161,900850Rebuilds$1,102,00062,600800 Allocate the support department costs to the operating units using the reciprocal method. (Do not round the intermediatecalculations. Round answers to 0 decimal places, e.g. 5,275.)SalesRepairsRebuildsSave for laterLA$69

Meaning of cost allocationAllocating the cost of service department into production department…

Answered: Allocate the support department costs…

Business

Accounting

Allocate the support department costs to the operating units using the reciprocal method.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 2EA: Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019,...

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