allocate the support departments costs , Cost Accounting

Assignment Help:

Support Department Cost Allocations. Riverside Furniture Company manufactures unfinished furniture for sale to retailers. Riverside has two support departments, Maintenance and Human Resources, and two operating departments, Machining and Assembly. The costs of the Maintenance Department are allocated to the operating departments based on the number of square feet and the costs of Human Resources are allocated based on the number of employees. The following data are available for the year:

2217_support determine.png

Required:

1. Allocate the support department's costs to the operating departments using the direct method

2. Rank the departments based on the percentages of their services provided to other supports departments use this ranking the support department's costs to the operating departments based on the step down method.

3. Allocate the support department's costs to the operating departments using the reciprocal method.

4. Which method would you recommend? why?


Related Discussions:- allocate the support departments costs

What does the cost principle, What does the cost principle mean for a compa...

What does the cost principle mean for a company's income statement?

Classification of labour costs, Classification of Labour Costs This ca...

Classification of Labour Costs This can be classified into like: a) Indirect or Direct cost b) Variable or Fixed cost c) Non controllable and controllable cost a)

Cost-plus pricing, Computation of mark up and Target selling price in cost-...

Computation of mark up and Target selling price in cost-minus pricin

Variance analysis, Variance Analysis This section describes how labour...

Variance Analysis This section describes how labour, material and overhead variances are calculated and what causes every of those variances. A chart is given also to describe

Combined cash - bank account- cash book, The following is a summary of a ca...

The following is a summary of a cash book for the year ended 31 April 2012 Payments                                              $              Receipts

What amount of amortization expense, Day Corporation purchased a patent on ...

Day Corporation purchased a patent on January 1, 2012 for $360,000. The patent had a useful life of 10 years at that date. In January of 2013, Day successfully defends the patent

Explain stock valuation, G. Mills was appointed a local agent for the High ...

G. Mills was appointed a local agent for the High Power Mobile Workshop Bolt (HPMW-B) on 1 April 2009. The HPMW-B is manufactured by Mobile Equipment Ltd (MEL). The company charges

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd