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Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 7ISBN: 978-0077733773Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 7ISBN: 978-0077733773 Exercise 17
Departmental Cost Allocation Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of raw materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments.
The costs incurred in the plant are as follows:
Required Use 4 or more decimal places (e.g., 33.3333%) in your calculations.
1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method (with the sourcing department going first), and (c) the reciprocal method
2. What are the total costs in the production departments after allocation
The costs incurred in the plant are as follows:
Required Use 4 or more decimal places (e.g., 33.3333%) in your calculations.
1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method (with the sourcing department going first), and (c) the reciprocal method
2. What are the total costs in the production departments after allocation
Explanation
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Joint costing means costing for more tha...
Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
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