The managers of Rochester Manufacturing are discussing ways to allocate the cost of service departments...
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The managers of Rochester Manufacturing are discussing ways to allocate the cost of service departments such as Quality Control and Maintenance to the production departments. To aid them in this discussion, the controller has provided the following information.
Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation $350,000 $200,000 $400,000 $300,000 $1,250,000 Budgeted machine hours 50,000 50,000 Budgeted direct labor hours 25,000 25,000 Budgeted hours of service: Quality Control 7,000 21,000 7,000 35,000 Maintenance 10,000 18,000 12,000 40,000 If Rochester Manufacturing uses the reciprocal method of allocating service costs, the total amount of Quality Control costs (rounded to the nearest dollar) to be allocated to the other departments would be:
The managers of Rochester Manufacturing are discussing ways to allocate the cost of service departments such as Quality Control and Maintenance to the production departments. To aid them in this discussion, the controller has provided the following information.
Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation $350,000 $200,000 $400,000 $300,000 $1,250,000 Budgeted machine hours 50,000 50,000 Budgeted direct labor hours 25,000 25,000 Budgeted hours of service: Quality Control 7,000 21,000 7,000 35,000 Maintenance 10,000 18,000 12,000 40,000If Rochester Manufacturing uses the reciprocal method of allocating service costs, the total amount of Quality Control costs (rounded to the nearest dollar) to be allocated to the other departments would be:
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