Our company has two services (cafeteria and heating) and two productions (cutting and assembly) departments....
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Accounting
Our company has two services (cafeteria and heating) and two productions (cutting and assembly) departments. suppose that cafeteria has an accumulated cost of 79.436$ and heating has an accumulated cost of 75.979$.
The following table shows the allocation bases for each department
CAFETERIA
HEATING
CUTTING
ASSEMBLY
TOTAL
SERVICES PROVIDED
CAFETERIA (No. of employee)
10
20
500
400
930
Heating (square meters)
308
615
1615
2462
5000
a. prepare a cost allocation table by using the direct method
b. prepare a cost allocation table by using the step-down method. Assume that cafeteria rank number 1
c. prepare a cost allocation table by using the reciprocal method
it is Managerial Accounting Course.
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