Arlington Acoustics manufactures a line of quality speakers. The main production departments are Shipping, Assembly,...
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Arlington Acoustics manufactures a line of quality speakers. The main production departments are Shipping, Assembly, and Fabrication. These departments are provided with services from centrally maintained facilities: computer; heating and air-conditioning, and power. The company is organized on a profit-center basis, with the service departments treated as cost centers. Consequently, each period, the costs of computing, heating, and power must be allocated to the production departments. The company follows the practice of allocating budgeted fixed costs on the basis of planned usage and standard variable costs on the basis of actual usage. The distribution of actual units of service provided last week is:
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