Solution-What is the total cost of department

What is the total cost of department

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Reference no: EM132797008

Problem 1: KKK Co. has two service departments and two production departments ( A and B). Data provided are as follows: Direct cost of Department A and Department B are 5,000 and 6,000, respectively. Cost of service dept 1 and 2 are 150 and 300, respectively. Services performed by Service Dept 1 to Service Dept 2, Department A and Department B are 40%, 40% and 20%, respectively. Services performed by Service Dept 2 to Service Dept 1, Department A and Department B are 20%, 70% and 10%, respectively. Assuming reciprocal method is used to allocate service department cost, what is the total cost of department A?

Reference no: EM132797008

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What is the total cost of department

Reference no: EM132797008

Reference no: EM132797008

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