(Appendix 11A)Flinders Company has two Service Departments-Factory Administration and Maintenance-and two Operating Departments.Selected information relating to these departments is given below:
The company allocates Service Department costs by the step-down method.Factory Administration costs are allocated first on the basis of number of employees,and then Maintenance costs are allocated on the basis of total labour hours.
Required:
Prepare a schedule showing the allocation of Service Department costs to other departments.

Question

(Appendix 11A)Flinders Company has two Service Departments-Factory Administration and Maintenance-and two Operating Departments.Selected information relating to these departments is given below:

The company allocates Service Department costs by the step-down method.Factory Administration costs are allocated first on the basis of number of employees,and then Maintenance costs are allocated on the basis of total labour hours.
Required:
Prepare a schedule showing the allocation of Service Department costs to other departments.

Quizplus · Accepted Answer

The Answer of (Appendix 11A)Flinders Company has two Service Departments-Factory Administration and Maintenance-and two Operating Departments.Selected information relating to these departments is given below: The company allocates Service Department costs by the step-down method.Factory Administration costs are allocated first on the basis of number of employees,and then Maintenance costs are allocated on the basis of total labour hours. Required: Prepare a schedule showing the allocation of Service Department costs to other departments.

(Appendix 11A)Flinders Company Has Two Service Departments-Factory Administration and Maintenance-And