Boston Corporation has two production departments, Assembly and Machining, and two service departments, Personnel and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of July, 2020 are as follows:

Required:
Compute the allocation of service department costs to producing departments for July 2020 using the step method.

Question

Boston Corporation has two production departments, Assembly and Machining, and two service departments, Personnel and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of July, 2020 are as follows:
  
Required:
Compute the allocation of service department costs to producing departments for July 2020 using the step method.

Quizplus · Accepted Answer

The Answer of Boston Corporation has two production departments, Assembly and Machining, and two service departments, Personnel and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of July, 2020 are as follows:
  
Required:
Compute the allocation of service department costs to producing departments for July 2020 using the step method.

Boston Corporation Has Two Production Departments, Assembly and Machining, and Two