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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 10
Allocating Service Department Costs First to Production Departments and Then to Jobs
Refer to the facts in Exercise 11-21. Assume that both Building Aand Building B work on just two jobs during the month of June: RW-12 and RW-13. Costs are allocated to jobs based on labor-hours in Building A and machine-hours in Building B. The number of labor- and machine-hours worked in each department are as follows:
Required
How much of the service department costs allocated to Building A and Building B in the direct method should be allocated to Job RW-12 How much should be allocated to Job RW-13
Refer to the facts in Exercise 11-21. Assume that both Building Aand Building B work on just two jobs during the month of June: RW-12 and RW-13. Costs are allocated to jobs based on labor-hours in Building A and machine-hours in Building B. The number of labor- and machine-hours worked in each department are as follows:
Required
How much of the service department costs allocated to Building A and Building B in the direct method should be allocated to Job RW-12 How much should be allocated to Job RW-13
Explanation
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Service Departments overhead costs are a...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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