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StormLrd StormLrd
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6 years ago
Krum Lawn Equipment has five departments, of which Casting and Finishing are producing departments. Maintenance, Product Movement, and Inspection are service departments. The distribution of the service departments is as follows:

Service Costs   Services provided to:

   Maint.    Prod. Move.   Insp.   Cast.   Finish.
Maintenance   $84,000   5%   25%    50%    20%
Product movement    160,000   10%   5   45   40
Inspection     38,000   15   5   20   60

Required:

Use the direct method to allocate the service departments' costs. Prepare a schedule showing the total costs allocated to each department.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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GarretAGarretA
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6 years ago
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Without mathematics, there's nothing you can do. Everything around you is mathematics. Everything around you is numbers.

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3 years ago
thanks
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3 years ago
thank you
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