Requirement 1. Allocate the costs of the service departments using the direct me
ID: 2472625 • Letter: R
Question
Requirement 1. Allocate the costs of the service departments using the direct method. (Use parentheses or a minus sign when decreasing departments by allocating costs. For amounts with a $0 balance, make sure to enter "O" in the appropriate cell.) Building Traditional Electronic Materials Receiving Service and Handling Pianos Pianos $180,000 $ 130,000 $ 660,000 $ Direct department costs before allocation Building serviceS Materials receiving and handling Total costs after allocation 120,000 44353 824353 560,000 60,000 115318 735318 (180,000) (130,000)Explanation / Answer
Building Service
Material receiving and handling
Traditional piono
electronic piano
Total
Square footage occupied
70000
35000
105000
No of final piano produced
7800
10400
18200
Average no of component per piano
8
18
Total no of component
62400
187200
249600
Direct labour hour
30500
7800
38300
Basis
Building Service
Material receiving and handling
Traditional piono
electronic piano
Direct departmental cost
180000
130000
660000
560000
Building service
Square footage occupied
-180000
120000
60000
Material receiving and handling
Total no of component
-130000
32500
97500
Total cost
0
0
812500
717500
Building Service
Material receiving and handling
Traditional piono
electronic piano
Total
Square footage occupied
70000
35000
105000
No of final piano produced
7800
10400
18200
Average no of component per piano
8
18
Total no of component
62400
187200
249600
Direct labour hour
30500
7800
38300
Basis
Building Service
Material receiving and handling
Traditional piono
electronic piano
Direct departmental cost
180000
130000
660000
560000
Building service
Square footage occupied
-180000
120000
60000
Material receiving and handling
Total no of component
-130000
32500
97500
Total cost
0
0
812500
717500
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