$1.00 Can somebody help me please
- From General-Questions: General-Academic-Questions
- Closed, but you can still post tutorials
- Due on Mar. 19, 2012
- Asked on Mar 15, 2012 at 11:30:57PM
San Juan
Minerals (SJM) has two service departments and two operating departments.
Operating data
for these
departments for last year are as follows:
Service
Departments Operating Departments
Maintenance
Cafeteria Mining Processing
Departmental
costs $48,000 $45,000 $70,000 $130,000
Machine hours
2,000 1,000 11,000 9,000
Number of
employees 40 30 400 360
Costs of the
Maintenance Department are allocated on the basis of machine hours. Cafeteria
costs are
allocated on
the basis of number of employees. SJM does not distinguish between variable and
fixed
overhead
costs.
A.) Assuming
that SJM allocates service department costs using the direct method, the total
cost allocated
from Cafeteria to Mining would be closest to:
is the answer? 22,500. 21,687. 15,750 or 23,684
B) Assume
that SJM uses the step method to allocate service department costs, starting with
Maintenance. The total overhead allocated from Maintenance to Mining would be closest to:
Is the answer ? $16,800. $25,143. $22,957.or $51,150.
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