Dean Corporation has two service departments, Power and Maintenance, and two production departments, Painting and Polishing. The following data have been estimated for next year's operations: Requirements:
(1) a) For which service department would you use kilowatt hours to allocate service costs.
b) For which service department would you use square footage to allocate service costs.
(2) Distribute the service department costs using the direct distribution method.
(3) Prepare the journal entries to distribute the costs of the service departments to the production departments given the results of your calculations.

Question

Dean Corporation has two service departments, Power and Maintenance, and two production departments, Painting and Polishing. The following data have been estimated for next year's operations:  Requirements:
(1) a) For which service department would you use kilowatt hours to allocate service costs.
b) For which service department would you use square footage to allocate service costs.
(2) Distribute the service department costs using the direct distribution method.
(3) Prepare the journal entries to distribute the costs of the service departments to the production departments given the results of your calculations.

Quizplus · Accepted Answer

The Answer of Dean Corporation has two service departments, Power and Maintenance, and two production departments, Painting and Polishing. The following data have been estimated for next year's operations:  Requirements:
(1) a) For which service department would you use kilowatt hours to allocate service costs.
b) For which service department would you use square footage to allocate service costs.
(2) Distribute the service department costs using the direct distribution method.
(3) Prepare the journal entries to distribute the costs of the service departments to the production departments given the results of your calculations.

Dean Corporation Has Two Service Departments, Power and Maintenance, and Two