Sacramento Company has two service departments (A and B) and two producing departments (C and D). Last year, direct costs were A P80,0o; B P60,000; C P15,000 and D P20,000. A provides services to B 10%, C 60% and D 30% while B provides services to A 30%, C 20% and D 50%. Using the algebraic method, Dept. A's allocation to Dept. C was *

Sacramento Company has two service departments (A and B) and two producing departments (C and D). Last year, direct costs were A P80,0o; B P60,000; C P15,000 and D P20,000. A provides services to B 10%, C 60% and D 30% while B provides services to A 30%, C 20% and D 50%. Using the algebraic method, Dept. A's allocation to Dept. C was *

Name: Sacramento Company has two service departments (A and B) and twoprodu
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Description: Sacramento Company has two service departments (A and B) and twoproducing departments (C and D). Last year, direct costs were A P80,000;B P60,000; C P15,000 and D P20,000. A provides services to B 10%, C60% and D 30% while B provides services to A 3

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 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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