Chapter 12 Decision guidelines - Dallas Cleaning - Cost allocations from service departments to producing departments
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| Chapter 12 Decision guidelines Dallas Cleaning Cost allocations from service departments to producing departments 25-06-2009 Direct cost # employees direct labor hrs sq foot cleaned personnel $ 70,000 6 Admin $ 90,000 10 Residential $ 240,000 36 30,000 4,500,000 Commercial $400,000 24 45,000 9,970,000 Create an Excel spreadsheet to allocate costs using the direct method and the step down method. Use the results to answer questions about your findings. 1. What are the total costs for the Residential department using the direct method? What are the total costs for the Commercial department using the direct method? 2. What are the total costs for the Residential department using the step-down method? 3. What are the total costs for the Commercial department using the step-down method? 4. Which method would you recommend that Antonio Cleaning use to allocate their service departments’ costs to their producing departments? Why? |
11 years ago
Chapter 12 Decision guidelines - Dallas Cleaning - Cost allocations from service departments to producing departments
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c_12-59_decision_guidelines_dallas_cleaning.xls
