Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. Support departments Operating departments Total Personnel Cafeteria Maintenance Machining Assembly Costs $386,336 $245,806 $155,362 $967,317 $709,363 $2,464,184 Personnel Cafeteria 5% 10% 20% 30% 40% Maintenance 10% 20% 5% 40% 50% 50% 20% For the reciprocal method, what is the correct equation for Maintenance? a. M 0.1P-0.2C = 155362 b. M 0.2P 0.1C = 155362 c. M + 0.2P+ 0.05C =155362 d.M 0.2P 0.05C=155362

Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. Support departments Operating departments Total Personnel Cafeteria Maintenance Machining Assembly Costs $386,336 $245,806 $155,362 $967,317 $709,363 $2,464,184 Personnel Cafeteria 5% 10% 20% 30% 40% Maintenance 10% 20% 5% 40% 50% 50% 20% For the reciprocal method, what is the correct equation for Maintenance? a. M 0.1P-0.2C = 155362 b. M 0.2P 0.1C = 155362 c. M + 0.2P+ 0.05C =155362 d.M 0.2P 0.05C=155362

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 2BE: Support department allocations The centralized computer technology department of Hardy Company has...

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Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $270,000 to $290,000?
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first?