Solution-What total amount of service cost that should be

What total amount of service cost that should be allocated

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Reference no: EM132706331

Candice Corporation produces reusable Christmas cards in two departments:

Printing and Laminating. These departments are supported by two service departments: Personnel and Maintenance. Personnel use the number of employees as an allocation base and Maintenance uses machine hours. The expected level of activity for next quarter is shown below:

No. Of Employees Machine hours

Personnel 40 -
Maintenance 60 -
Printing 120 60, 000
Laminating 180 40, 000

Allocations are made in the order shown below. Budgeted costs for next quarter are P93, 000 for Personnel and P68, 000 for Maintenance.

Required:

Problem a: Total amount of service cost that should be allocated to the printing and laminating department under

1. Direct method
2. Step method

Reference no: EM132706331

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What total amount of service cost that should be allocated

Reference no: EM132706331

Reference no: EM132706331

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