Following is the departmental data of Omega Solution Company.If calculated using the sequential method, the cost of power department allocated to the Assembly department is _____.

A) $15,000
B) $35,000
C) $20,000
D) $60,000
E) $24,000

Question

Following is the departmental data of Omega Solution Company.If calculated using the sequential method, the cost of power department allocated to the Assembly department is _____.

A) $15,000 
B) $35,000 
C) $20,000 
D) $60,000 
E) $24,000

Quizplus · Accepted Answer

Usage or allocation ratio for the Assembly department = 100,000 / (100,000 + 300,000 + 100,000) = 20%
Cost of power department allocated to the Assembly department = 20% × $300,000 = $60,000

Following Is the Departmental Data of Omega Solution Company