Concept explainers
Minor Co. has a
Service Department 1 cost is allocated to producing departments on the basis of machine hours. Service Department 2 cost is allocated to producing departments on the basis of direct labor hours. Producing Department 1 has budgeted 8,000 machine hours and 12,000 direct labor hours. Producing Department 2 has budgeted 2,000 machine hours and 12,000 direct labor hours. What is the total cost allocation from the two service departments to Producing Department 1?
- a. $173,600
- b. $140,000
- c. $134,400
- d. $274,400
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Chapter 7 Solutions
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