The costs of service department A and service department B need to be reapportioned to the two Production departments using the direct method. The total overhead costs of each department are as follows:Service department A is to be reapportioned to the production centres on the basis of number of employees. Service department B is to be reapportioned on the basis of machine hours.What is the total overhead cost of Production 1 after the reapportionment?
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举一反三
- Train Company has two service departments, Maintenance and Human Resources. Train Company also has two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while Human Resources costs are allocated based on number of employees. The following information has been gathered for the current year: Maintenance Human Resources Mixing Finishing Direct costs $50,400 $33,600 $42,000 $70,000 Square footage 1,600 800 3,200 2,400 Number of employees 16 24 48 64 If the direct method is used to allocate service department costs, then the total cost of the Human Resources Department after the Maintenance Department cost allocation would be ________.
- 中国大学MOOC: In direct method, each service department assigns its own costs to operating departments plus the costs that have been allocated to it from other service departments.
- The reciprocal cost for each service department is its direct cost plus its share, based on the proportion of service units consumed, of the direct costs of the other service departments. A: 正确 B: 错误
- 中国大学MOOC: The reciprocal cost for each service department is its direct cost plus its share, based on the proportion of service units consumed, of the direct costs of the other service departments.
- Linka Company has a total of five departments, namely, the R&D department, the finance department, the sales department, the production department and the HR department.