Na nal company nas two two support departments A&B and two operating departments X&Y. for the first quarter 2021, Budgeted overhead costs before any interdepartmental costs allocations were: A 800,000, B $1,500,000, X $5,000,000 and Y 11,000,000. Support work supplied by A to B

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter4: Job Order Costing
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Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...
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National company has two support
departments A&B and two operating
departments X&Y. for the first quarter 2021,
Budgeted overhead costs before any
interdepartmental costs allocations were: A
$800,000, B $1,500,000, X $5,000,000 and Y
$11,000,000. Support work supplied by A to B
20%, to X 50% and to Y 30%. Support work
supplied by B to A 25%, to X 35% and to Y
40%. Using direct method, the total cost of
:department A before allocation is
.a
.$1,175,000
.b
.$800,000
.C
.$1,500,000
.d
.$0
Transcribed Image Text:National company has two support departments A&B and two operating departments X&Y. for the first quarter 2021, Budgeted overhead costs before any interdepartmental costs allocations were: A $800,000, B $1,500,000, X $5,000,000 and Y $11,000,000. Support work supplied by A to B 20%, to X 50% and to Y 30%. Support work supplied by B to A 25%, to X 35% and to Y 40%. Using direct method, the total cost of :department A before allocation is .a .$1,175,000 .b .$800,000 .C .$1,500,000 .d .$0
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