A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the ser- vice departments. The production departments are Assembly and Machining. The followwing data have been estimated for next year's operations: Direct labor hours: Floor space occupied: Assembly, B0,000; Machining, 40,000 Factory Office, 10%Assembly, 40% Machining. 50% The direct charges identified with each of the departments are as follows: Building maintenance.... $ 90,000 Factory office.. 171,000 Assembly .... 378,000 Machining 328,000 The building maintenance department services all departments of the company, and its costs are allocated using floor space occu- pied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first. 1. Direct method and sequential method of distributing servicedepartment costsA manufacturing company has two service and two productiondepartments. Building Maintenance and Factory Office are the ser-vice departments. The production departments are Assembly andMachining.The followwing data have been estimated for next year's operations:Direct labor hours:Floor space occupied:Assembly, B0,000; Machining, 40,000Factory Office, 10%Assembly. 40%Machining. 50%The direct charges identified with each of the departments areas follows:Building maintenance....$ 90,000Factory office..171,000Assembly.....378,000Machining328,000The building maintenance department services all departments ofthe company, and its costs are allocated using floor space occu-pied, while factory office costs are allocable to Assembly andMachining on the basis of direct labor hours.Distribute the service department costs, using the directmethod.Distribute the service department costs, using the sequential1.2.distribution method, with the department servicing the greatestnumber of other departments distributed first.

Name: A manufacturing company has two service and two production departments
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Description: A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the ser- vice departments. The production departments are Assembly and Machining. The followwing data have been estimated for next yea

Maintenance distribution costs are required to be allocated to assembly and machining on a floor…

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A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the ser- vice departments. The production departments are Assembly and Machining. The followwing data have been estimated for next year's operations: Direct labor hours: Floor space occupied: Assembly, B0,000; Machining, 40,000 Factory Office, 10%Assembly, 40% Machining. 50% The direct charges identified with each of the departments are as follows: Building maintenance.... $ 90,000 Factory office.. 171,000 Assembly .... 378,000 Machining 328,000 The building maintenance department services all departments of the company, and its costs are allocated using floor space occu- pied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first. 1.

Direct method and sequential method of distributing service
department costs
A manufacturing company has two service and two production
departments. Building Maintenance and Factory Office are the ser-
vice departments. The production departments are Assembly and
Machining.
The followwing data have been estimated for next year's operations:
Direct labor hours:
Floor space occupied:
Assembly, B0,000; Machining, 40,000
Factory Office, 10%Assembly. 40%
Machining. 50%
The direct charges identified with each of the departments are
as follows:
Building maintenance....
$ 90,000
Factory office..
171,000
Assembly
.....
378,000
Machining
328,000
The building maintenance department services all departments of
the company, and its costs are allocated using floor space occu-
pied, while factory office costs are allocable to Assembly and
Machining on the basis of direct labor hours.
Distribute the service department costs, using the direct
method.
Distribute the service department costs, using the sequential
1.
2.
distribution method, with the department servicing the greatest
number of other departments distributed first.

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