Barstow Manufacturing Company has two service departments — product design and engineering support, and two production departments...

3.6 Ratings (463 Votes)

Answer:

	Design	Support	Assembly	Finishing
Operating cost of department	140000	160000	550000	840000
Allocated design cost to other department in proportionate of 10:30:60 respectively	-140000	14000	42000	84000
Total	0	174000	592000	924000
Allocated support cost to other department in proportionate of 20:45:35 respectively	34800	-174000	78300	60900
Total	34800	0	670300	984900
Allocated design cost to other department in proportionate of 10:30:60 respectively	-34800	3480	10440	20880
Total	0	3480	680740	1005780
Allocated support cost to other department in proportionate of 20:45:35 respectively	696	-3480	1566	1218
Total	696	0	682306	1006998
Allocated design cost to other department in proportionate of 10:30:60 respectively	-696	70	209	418
Total	0	70	682515	1007416
Allocated support cost to other department in proportionate of 20:45:35 respectively	14	-70	32	25
Total	14	0	382547	1007441
Allocated design cost to other department in proportionate of 10:30:60 respectively	-14	1	4	8
Total	0	1	382551	1007449
Allocated support cost to other department in proportionate of 20:45:35 respectively	0	-1	0.45	0.35
Department overhead after allocation	0	0	382551	1007449

Cost accumulated in the finishing department using the reciprocal method				1007449

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