Question
Warren Ltd. has two production departments, Building A and Building B, and two service departments Maintenance and Cateteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of June tollow Proportion of Services Used by feteria Building A Maintenanc Building B $505,000 315,000 Building A Building B Maintenance207,000 Cafeteris 0.1 0.7 0.2 0.1 Required Use the step method to allocate the service costs, using the following Do not round intermediate calculations. Round your (a)The order of allocation starts with Maintenance (Do not round Intermediate calculations. Round your answers to the nearest dollar amount To Cafeteria Building Suilding B From Maintenance Service department costs Maintenance
Explanation / Answer
A./
B./
FROM MAINTENANCE CAFETERIA BUILDING A BUILDING B SERVICE DEPT. COST $207000 $177000 $505000 $315000 MAINTENANCE N/A $20700 $144900 $41400 CAFETERIA $138390 N/A $39540 $19770
TOTAL $345390 $197700 $689440 $376170
