Fans Company has two service departments-product design and engineering support, and two production departments-assembly and finishing. Thedistribution of each service department's efforts to the other departments is shown below:SERVICE DEPARTMENTProduct DesignEngineering SupportThe direct operating costs of the departments (including both variable and fixed costs) were as follows:Product DesignEngineering SupportAssemblyFinishingMultiple Choice$631,492Design0%20%$1,018.633.SERVICES PROVIDED TO$ 162,000$ 142,000$ 552,000$ 842,000Support10%0%The total cost accumulated in the assembly department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%,and round all dollar amounts to the nearest whole dollar. Assume that the engineering support department goes first):Assembly30%45%Finishing.60%35%

The various methods for cost allocation are direct, step and reciprocal. The step method allocates…

Fans Company has two service departments-product design and engineering support, and two produc distribution of each service department's efforts to the other departments is shown below SERVICES PROVIDED TO SERVICE DEPARTMENT Product Design Engineering Support The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 162,000 Engineering Support $ 142,000 Assembly $ 552,000 Finishing $ 842,000 Design 0% 20% Support 10% 0% Assembly 30% 45% Finishing 60% 35% The total cost accumulated in the assembly department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%. and round all dollar amounts to the nearest whole dollar. Assume that the engineering support department goes first):

Fans Company has two service departments-product design and engineering support, and two produc distribution of each service department's efforts to the other departments is shown below SERVICES PROVIDED TO SERVICE DEPARTMENT Product Design Engineering Support The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 162,000 Engineering Support $ 142,000 Assembly $ 552,000 Finishing $ 842,000 Design 0% 20% Support 10% 0% Assembly 30% 45% Finishing 60% 35% The total cost accumulated in the assembly department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%. and round all dollar amounts to the nearest whole dollar. Assume that the engineering support department goes first):

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 23E: Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating...

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Fans Company has two service departments - product design and engineering support, and two production departments - assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT Product Design Engineering Support Product Design Engineering Support Assembly Finishing Multiple Choice O The direct operating costs of the departments (including both variable and fixed costs) were as follows: $1.057.333. O $1,970,000. O $712,667. O The total cost accumulated in the finishing department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333 %, and round all dollar amounts to the nearest whole dollar assume that the engineering support department goes first): Design 0% 20% $664,792. $980,208. SERVICES PROVIDED TO $ 180,000 $ 160,000 $570,000 $ 860,000 Support 10% 0% Assembly 30% 45% Finishing 60% 35%
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Fans Company has two service departments – product design and engineering support, and two production departments - assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICES PROVIDED TO SERVICE DEPARTMENT Design Support Assembly Finishing Product Design Engineering Support 0% 10% 30% 60% 20% 0% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: $ 192,000 $ 172,000 $ 582,000 $ 872,000 Product Design Engineering Support Assembly Finishing The total cost accumulated in the finishing department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar assume that the engineering support department goes first): Multiple Cholce $1,083,133. $2,018,000. $734,867. $686,992. $1,006,008.
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Fans Company has two service departments — product design and engineering support, and two production departments — assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT SERVICES PROVIDED TO Design Support Assembly Finishing Product Design 0% 10% 30% 60% Engineering Support 20% 0% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 105,000 Engineering Support $ 195,000 Assembly $ 540,000 Finishing $ 790,000 The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):
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