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 labor hours.
Required:
Prepare a schedule showing the allocation of service department costs to other departments.

Question

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 labor hours.
Required:
Prepare a schedule showing the allocation of service department costs to other departments.

Quizplus · Accepted Answer

The Answer of 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 labor hours.
Required:
Prepare a schedule showing the allocation of service department costs to other departments.

Flinders Company Has Two Service Departments,Factory Administration and Maintenance,and Two