The Lucas Manufacturing Company has two production departments (fabrication and assembly) and three service departments (general factory administration,factory maintenance,and factory cafeteria) .A summary of costs and other data for each department,prior to allocation of service department costs for the year ended June 30,appears below: The costs of the general factory administration department,factory maintenance department,and factory cafeteria are allocated on the basis of direct labor hours,square footage occupied,and number of employees,respectively.
Assuming that Lucas elects to distribute service department costs to production departments using the direct distribution method,the amount of general factory administration department costs that would be allocated to the assembly department would be (round all final calculations to the nearest dollar) :
A) $30,400.
B) $25,650.
C) $0.
D) $49,600.
Correct Answer:
Verified
Q40: A factory department that is an essential
Q41: The Owens Company uses the machine hour
Q42: The number of workers in the departments
Q43: The Mason Corporation budgeted overhead at $240,000
Q44: Once the amounts of the service department
Q46: Which of the following statements about service
Q47: The preferred sequence for distributing the cost
Q48: The method of distributing service department costs
Q49: Meger Manufacturing uses the direct labor cost
Q50: The method of distributing service department costs
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents