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Home Q & A Board Other Fields Homework Help Business Economics
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StormLrd StormLrd
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6 years ago
What is the Capping Department's total cost if both service departments are allocated using the complete reciprocated cost method and their costs for the year were $375,000 for Plant Maintenance and $100,000 for Data Processing?
A) $412,766
B) $321,898
C) $196,898
D) $191,053
E) $184,132
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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#1
6 years ago
B
Explanation:  B) Capping: PM = (8,200/16,700) × $375,000 = $184,132
DP = (600/4,700) × $100,000 = $12,766
Total costs = $184,132 + $12,766 + $125,000 = $321,898
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