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Home / Questions / Arbon Company has three service departments and two operating departments. Selected data concerning

Arbon Company has three service departments and two operating departments. Selected data concerning

Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are

Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Service Departments Operating Departments Equipment Administrative Janitorial Maintenance $ 84,000 $ 67,800 $36,000 60 240 300 1,200 1,000 Costs Number of employees Square metres of space occupied Machine-hours 80 Prep $256, 100 600 2,000 10,000 Finishing $ 498,600 300 7,000 30,000 Total $942,500 1,280 11,500 40,000 The company allocates service department costs by the step-down method in the following order: Administrative (number of employees), Janitorial (space occupied), and Equipment Maintenance (machine-hours). Required: Assuming that the company uses the direct method rather than the step-down method to allocate service department costs, how much overhead cost would be assigned to each operating department? (Negative amounts should be indicated by a minus sign.) Service Departments Administrative Janitorial Equipment Maintenance Operating Departments Prep Finishing Finishing to Total Departmental costs before allocations Allocations: Administrative Janitorial Equipment maintenance Total costs after allocation $ 0 $ 0 $ 0 $ 0

Apr 01 2020 View more View Less

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