Cougar Company has two service departments,Maintenance and Cafeteria,as well as two production departments,Mixing and Finishing.Maintenance Department costs are allocated based on direct labor hours and Cafeteria Department costs are allocated based on number of employees.The following data are available:
Assume the step-down method of allocating service departments' costs is used.The Maintenance Department renders the greatest service and is allocated first.
Required:
A)Determine the total costs of the Mixing Department after allocating the service departments' costs.
B)Determine the total costs of the Finishing Department after allocating the service departments' costs.

Question

Cougar Company has two service departments,Maintenance and Cafeteria,as well as two production departments,Mixing and Finishing.Maintenance Department costs are allocated based on direct labor hours and Cafeteria Department costs are allocated based on number of employees.The following data are available:
  Assume the step-down method of allocating service departments' costs is used.The Maintenance Department renders the greatest service and is allocated first.
Required: 
A)Determine the total costs of the Mixing Department after allocating the service departments' costs. 
B)Determine the total costs of the Finishing Department after allocating the service departments' costs.

Quizplus · Accepted Answer

The Answer of Cougar Company has two service departments,Maintenance and Cafeteria,as well as two production departments,Mixing and Finishing.Maintenance Department costs are allocated based on direct labor hours and Cafeteria Department costs are allocated based on number of employees.The following data are available:
  Assume the step-down method of allocating service departments' costs is used.The Maintenance Department renders the greatest service and is allocated first.
Required: 
A)Determine the total costs of the Mixing Department after allocating the service departments' costs. 
B)Determine the total costs of the Finishing Department after allocating the service departments' costs.

Cougar Company Has Two Service Departments,Maintenance and Cafeteria,as Well as Two