Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher

تمرين 10

Allocating Service Department Costs First to Production Departments and Then to Jobs
Refer to the facts in Exercise 11-21. Assume that both Building Aand Building B work on just two jobs during the month of June: RW-12 and RW-13. Costs are allocated to jobs based on labor-hours in Building A and machine-hours in Building B. The number of labor- and machine-hours worked in each department are as follows:

Required
How much of the service department costs allocated to Building A and Building B in the direct method should be allocated to Job RW-12 How much should be allocated to Job RW-13