Exercise 11-23 Cost Allocation: Direct Method (LO 11-2) Warren Ltd. has...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Exercise 11-23 Cost Allocation: Direct Method (LO 11-2)
Warren Ltd. has two production departments, Building A and Building B, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of June follow:
Proportion of services used by
Department
Direct Costs
Maintenance
Cafeteria
Building A
Building B
Building A
$595,000
Building B
362,000
Maintenance
400,000
N/A
0.2
0.6
0.2
Cafeteria
360,000
0.7
N/A
0.1
0.2
Required:
Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)
TOTAL COSTS
BUILDING A
BUILDING B
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
