Scaffolder Ltd. is a manufacturing company making construction items. The production process is divided into two production departments, Assembly and Finishing. There is one service department, the Stores department, which is used by both the Assembly and the Finishing departments. The relevant information for the year ahead is as follows: Indirect Costs for All Three Departments in Total: Item Total £ Maintenance 40,000 Rent 80,000 Depreciation 500,000 TOTAL 620,000 The following information is available about each department: Item Assembly (£) Finishing (£) Stores (£) Floor Space (sq meters) 40,000 45,000 15,000 Value of machinery (£) 160,000 20,000 20,000 Maintenance hours 3,000 2,000 Stores requisitions 2,000 3,000 After allocating the indirect costs to the Assembly, Finishing and Stores departments using a suitable method for each department and reallocating the service department costs over production departments, which are the total costs for each department? O a. Total costs for the assembly department equal to £56,000, for the finishing department equal to £52,000 and for the Stores Department equal to £12,000. O b. Total costs for the assembly department equal to £456,000, for the finishing department equal to £102,000 and for the Stores Department equal to £62,000. O c. None of the answers provided are correct O d. Total costs for the assembly department equal to £480,800, for the finishing department equal to £139,200 and for the Stores Department equal to £0. O e. Total costs for the assembly department equal to £620,000, for the finishing department equal to £480,800 and for the Stores Department equal to £0.
Scaffolder Ltd. is a manufacturing company making construction items. The production process is divided into two production departments, Assembly and Finishing. There is one service department, the Stores department, which is used by both the Assembly and the Finishing departments. The relevant information for the year ahead is as follows: Indirect Costs for All Three Departments in Total: Item Total £ Maintenance 40,000 Rent 80,000 Depreciation 500,000 TOTAL 620,000 The following information is available about each department: Item Assembly (£) Finishing (£) Stores (£) Floor Space (sq meters) 40,000 45,000 15,000 Value of machinery (£) 160,000 20,000 20,000 Maintenance hours 3,000 2,000 Stores requisitions 2,000 3,000 After allocating the indirect costs to the Assembly, Finishing and Stores departments using a suitable method for each department and reallocating the service department costs over production departments, which are the total costs for each department? O a. Total costs for the assembly department equal to £56,000, for the finishing department equal to £52,000 and for the Stores Department equal to £12,000. O b. Total costs for the assembly department equal to £456,000, for the finishing department equal to £102,000 and for the Stores Department equal to £62,000. O c. None of the answers provided are correct O d. Total costs for the assembly department equal to £480,800, for the finishing department equal to £139,200 and for the Stores Department equal to £0. O e. Total costs for the assembly department equal to £620,000, for the finishing department equal to £480,800 and for the Stores Department equal to £0.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 3E: Radford Inc. manufactures a sugar product by a continuous process, involving three production...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning