rish Corporation distributes its service department overhead cost directly tto producing departments. Information for January, 2030 is presented below. Maintenance Utilities FOH cost 93,500 45,000 Service Provided to Maintenance 10% Utilities 20% Mixing 40% 30% Assembly 40% 60% Required: Determined the amount of factory overhead cost of service departments allocated to producing departments using: Direct Method Step Method Reciprocal Method
Problem 18 Service Cost Allocation
Irish Corporation distributes its service department
Maintenance Utilities
FOH cost 93,500 45,000
Service Provided to
Maintenance 10%
Utilities 20%
Mixing 40% 30%
Assembly 40% 60%
Required: Determined the amount of
- Direct Method
- Step Method
- Reciprocal Method
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 4 images
