Allocate the costs of services departments

Reference no: EM132817278

Question: A company has five departments of which are two productions namely: PQ and AS and three services providing departments namely H,M and S. These service departments provide services to the production departments and each other. the costs of providing these services are allocated to departments on the basis indicated below:

Total cost Basis of allocation
H R90 000 Floor area
M R300 000 Hours worked
S R240 000 Unit consumed
During the last year year , services provided were:
To H M S PQ AS
From:
H(m2) - 5 000 5 000 40 000 50 000
M(hours) 3 000 - 4 500 7 500 15 000
S(units) 192 000 48 000 _ 480 000 240 000

Required: Allocate the costs of services departments to production using algebraic method.

Reference no: EM132817278

Questions Cloud

Why organizational culture must be considered : Read Creating A Culture Of Recognition: Total Rewards & Recognition Initiative and review the information. After understanding the information, make your case.

Analyze the advantages of the instrument : Chapter 3 of the textbook gives a basic description of five performance appraisal instruments. Choose one of the instruments, and write a two- to three-page.

Describe the objectives clearly and specifically : The purpose of this assignment is to identify and apply Logistics and Supply Chain Management concepts/tools to suggest logistics performance priorities.

Which type of spss analysis might be most appropriate : Suppose a researcher wanted to use the secondary data found in the gss.sav data file to determine if males or females use the Internet more.

Allocate the costs of services departments : Allocate the costs of services departments to production using algebraic method.

How much Maintenance Department cost should be charged : How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department

Prepare a master budget for each of the first three months : The income tax rate for the company is 43%. Income taxes on the first quarter's income will not be paid until April 15. Prepare a master budget

Journalize the treasury stock transactions : Common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; Journalize the treasury stock transactions

Identify potential modifications to maximizer systems : Identify potential modifications to Maximizer systems that could in the future make Maximizer system more beneficial to a business in the future,

User Account

All Pages