Use the Direct Method to allocate Service Department Costs to the Operating Departments based on number...

Use the Direct Method to allocate Service Department Costs to the Operating Departments based on number (percentage) of employees.

Painting Dept = 110 employees

Welding Dept = 135 employees

	Service Dept. Maintenance	Service Dept. Cafeteria	Service Dept. Custodial	Operating Dept. Painting	Operating Dept. Welding
Dept costs before allocation	$200,000	110,000	275,000	500,000	850,000
Maintenance
Cafeteria
Custodial
Total after allocation

Use the Step-Down Method to allocate Service Department costs to the Operating Departments based on the number (percentage) of employees.

Cafeteria Dept = 30 employees

Custodial Dept = 25 employees

Painting Dept = 110 employees

Welding Dept = 135 employees

	Service Dept. Maintenance	Service Dept. Cafeteria	Service Dept. Custodial	Operating Dept. Painting	Operating Dept. Welding
Dept costs before allocation	$200,000	110,000	275,000	500,000	850,000
Maintenance
Cafeteria
Custodial
Total after allocation

Expert Solution

ekkarill92 answered 2 years ago

Use the Direct Method to allocate Service Department Costs to the Operating Departments based on number...

Use the Direct Method to allocate Service Department Costs to the Operating Departments based on number (percentage) of employees. Attacking Dept = 110 employees Shark Dept = 135 employees Service Dept. Maintenance Service Dept. Cafeteria Service Dept. Custodial Operating Dept. Painting Operating Dept. Welding Dept costs before allocation $200,000 110,000 275,000 500,000 850,000 Maintenance Cafeteria Custodial Total after allocation

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Use the Direct Method to allocate Service Department Costs to the Operating Departments based on number...

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