Service Department A Service Department B Producing Department C Producing Department D B C D Proportion of service by A to: 10% RCD A Proportion of service by B to: 30% 20% 50% Multiple Choice $76,800 $81,142. Direct costs 60% 30% sing the reciprocal (simultaneous solution) method, Department A's cost allocated to Department C (rounded to the nearest whole dollar) is $66,000 $110,000 70,600 28,200 28,600 $116,000 for the past accounting period.
Service Department A Service Department B Producing Department C Producing Department D B C D Proportion of service by A to: 10% RCD A Proportion of service by B to: 30% 20% 50% Multiple Choice $76,800 $81,142. Direct costs 60% 30% sing the reciprocal (simultaneous solution) method, Department A's cost allocated to Department C (rounded to the nearest whole dollar) is $66,000 $110,000 70,600 28,200 28,600 $116,000 for the past accounting period.
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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![The following information relates to Osceola Corporation for the past accounting period.
Service Department A
Service Department B
Producing Department C
Producing Department D
Proportion of service by A to:
10%
60%
30%
BUD
C
Proportion of service by B to:
30%
20%
50%
RUD
A
с
Using the reciprocal (simultaneous solution) method, Department A's cost allocated to Department C (rounded to the nearest whole dollar) is:
Multiple Choice
$76,800
Direct costs
$110,000
70,600
28,200
28,600
$81,142.
$66,000.
$116,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0c3606a6-6358-4824-810d-6cbb5e92ae68%2Fb744c380-ec50-4024-9307-d1946da7a8fb%2F8tzuvt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following information relates to Osceola Corporation for the past accounting period.
Service Department A
Service Department B
Producing Department C
Producing Department D
Proportion of service by A to:
10%
60%
30%
BUD
C
Proportion of service by B to:
30%
20%
50%
RUD
A
с
Using the reciprocal (simultaneous solution) method, Department A's cost allocated to Department C (rounded to the nearest whole dollar) is:
Multiple Choice
$76,800
Direct costs
$110,000
70,600
28,200
28,600
$81,142.
$66,000.
$116,000
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