Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Service Departments Maintenance $270,000 Utilities $ 648,000 Overhead costs incurred Service provided to departments Maintenance 5% Utilities 10% Producing-A Producing-B 20 40 70 55 Totals 100% 100% Required: What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Round percentage calculations to 4 decimal places (e.g., 33.3333%), do not round intermediate calculations and round your final answers to the nearest dollar amount.) Total Producing Producing Department A Producing Department B Department Cost 1. The direct method 2. The step method 3. The reciprocal method

Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Service Departments Maintenance $270,000 Utilities $ 648,000 Overhead costs incurred Service provided to departments Maintenance 5% Utilities 10% Producing-A Producing-B 20 40 70 55 Totals 100% 100% Required: What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Round percentage calculations to 4 decimal places (e.g., 33.3333%), do not round intermediate calculations and round your final answers to the nearest dollar amount.) Total Producing Producing Department A Producing Department B Department Cost 1. The direct method 2. The step method 3. The reciprocal method

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...

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