The Reeve Ltd Manufacturing Company Ltd has two production departments (Assembly and Finishing) and two...
60.1K
Verified Solution
Link Copied!
Question
Accounting
The Reeve Ltd Manufacturing Company Ltd has two production departments (Assembly and Finishing) and two support departments (Repairs and Engineering). The usage of the two support departments in 20X2 is as follows:
Service provided by:
Service provided to:
Repairs
Engineering
Assembly
Finishing
Repairs
-
10%
60%
30%
Engineering
20%
-
40%
40%
The budgeted costs in the support departments of 20X2 were as follows:
Repairs $90,000
Engineering $50,000
Using the direct method, what is the Engineering Department cost allocated to the Assembly Department?
A.
$34,000
B.
$26,000
C.
$25,000
D.
$28,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
