(Appendix 11A)Delta Manufacturing Company has two Service Departments-Custodial Services and Maintenance-and three Production Departments-Cutting,Milling,and Assembly.Delta allocates the cost of Custodial Services on the basis of square metres and Maintenance on the basis of labour hours.Budgeted operating data for the year just completed follow:
Required:
a)Prepare a schedule to allocate Service Department costs to the Production Departments by the direct method,rounding all dollar amounts to the nearest whole dollar.
b)Prepare a schedule to allocate Service Department costs to the Production Departments by the step-down method,allocating Custodial Services first,and rounding all amounts to the nearest whole dollar.

Question

(Appendix 11A)Delta Manufacturing Company has two Service Departments-Custodial Services and Maintenance-and three Production Departments-Cutting,Milling,and Assembly.Delta allocates the cost of Custodial Services on the basis of square metres and Maintenance on the basis of labour hours.Budgeted operating data for the year just completed follow:

Required:
a)Prepare a schedule to allocate Service Department costs to the Production Departments by the direct method,rounding all dollar amounts to the nearest whole dollar.
b)Prepare a schedule to allocate Service Department costs to the Production Departments by the step-down method,allocating Custodial Services first,and rounding all amounts to the nearest whole dollar.

Quizplus · Accepted Answer

The Answer of (Appendix 11A)Delta Manufacturing Company has two Service Departments-Custodial Services and Maintenance-and three Production Departments-Cutting,Milling,and Assembly.Delta allocates the cost of Custodial Services on the basis of square metres and Maintenance on the basis of labour hours.Budgeted operating data for the year just completed follow: Required: a)Prepare a schedule to allocate Service Department costs to the Production Departments by the direct method,rounding all dollar amounts to the nearest whole dollar. b)Prepare a schedule to allocate Service Department costs to the Production Departments by the step-down method,allocating Custodial Services first,and rounding all amounts to the nearest whole dollar.

(Appendix 11A)Delta Manufacturing Company Has Two Service Departments-Custodial Services and Maintenance-And