Waterbury Box Company
General Factory Administration and Maintenance are service departments in the Waterbury Box Company.Management has decided to allocate maintenance costs on the basis of the area in each department and general factory administration costs on the basis of labor hours the employees worked in each of their respective departments.
The following data appears in the company records for the current period:

Refer to the Waterbury Box Company.Use the direct method to allocate service department costs to the operating departments.

Question

Waterbury Box Company
General Factory Administration and Maintenance are service departments in the Waterbury Box Company.Management has decided to allocate maintenance costs on the basis of the area in each department and general factory administration costs on the basis of labor hours the employees worked in each of their respective departments.
The following data appears in the company records for the current period:
  
Refer to the Waterbury Box Company.Use the direct method to allocate service department costs to the operating departments.

Quizplus · Accepted Answer

The Answer of Waterbury Box Company
General Factory Administration and Maintenance are service departments in the Waterbury Box Company.Management has decided to allocate maintenance costs on the basis of the area in each department and general factory administration costs on the basis of labor hours the employees worked in each of their respective departments.
The following data appears in the company records for the current period:
  
Refer to the Waterbury Box Company.Use the direct method to allocate service department costs to the operating departments.

Waterbury Box Company General Factory Administration and Maintenance Are Service Departments in the Departments