Save Question 3 (2 points) 5 X Company has two production departments, Machining

Question

Save Question 3 (2 points) 5 X Company has two production departments, Machining and Finishing. It has two service departments, Maintenance and Technology. The following table shows the number of hours of service provided by the service department to other departments. Using Department Service Dept Maintenance Technology Machining Finishing Maintenance Technology2,000 4,000 4,000 32,000 14,000 2,000 The Technology Department has costs of 720,000. The Maintenance Department has costs of $108,000 ?Assume X Company uses the direct method of cost allocation, compute the amount of the Maintenance Department's cost that allocated to the Technology Department. If you want to compute (2/9)*63000, multiply 2 times 63000 and then divide by 9. DO NOT multiply $63,000 by .22, Do not enter any dollar signs or commas. For example enter $20,000 as 20000 Save Question 4 (2 points) X Company has two production departments, Machining and Finishing. It has two service departments, Maintenance and Technology. The following table shows the number of hours of service provided by the service department to other departments. Using Department Service Dept Maintenance Technology Machining Finishing

Explanation / Answer

$0. is allocated to technology department under direct method.

Direct method does not allow allocation of one service department cost to another.

Accordingly the maintenance departments cost cannot be allocated to technology department.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.