Solution-Allocate the service department costs to the two

Allocate the service department costs to the two operations

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Reference no: EM131665486

Question - Off The Wall Canine Rescue has two Operations departments (local and national) and three service departments (Rescue Intake, Training, and Grooming). During July, the following costs and service department usage ratios were recorded:

Supplying Department	Using Department
Supplying Department	Rescue Intake	Training	Grooming	Local	National
Rescue Intake	0	60	0	20	20
Training	15%	0	10%	50%	25%
Grooming	0	20%	0	20%	60%
Direct cost	$52,000	$298,000	$45,000	$255,000	$90,000

Required: Allocate the service department costs to the two operations departments using the reciprocal method.

Reference no: EM131665486

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Allocate the service department costs to the two operations

Reference no: EM131665486

Reference no: EM131665486

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