Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. smeltzer uses the direct method to allocate suppor

Smeltzer uses the Direct Method to allocate support department costs. The Service Departments are HR...

90.2K

Verified Solution

Question

Accounting

Smeltzer uses the Direct Method to allocate support department costs. The Service Departments are HR and Custodial services. Production Departments are Fabrication and Assembly. Initial cost distributions to each department are as follows: HR = $240,000; Custodial = $620,000; Fabrication = $1,400,000 and Assembly = $890,000.

HR Custodial Fabrication Assembly

Square feet 600 1,000 5,000 3,000

People 8 15 30 20

Smeltzer uses # people as cost driver for HR and square footage for Custodial costs. What will be the total costs for the Assembly Department after all service department costs are allocated?

$1,218,500

$1,931,500

$1,750,020

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students