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Posted: June 15th, 2022
Allocating service department costs using the step technique. Gretsky Company has two service departments (upkeep and basic manufacturing unit administration) and two working departments (chopping and meeting). Administration has determined to allocate upkeep costs on the foundation of the space in every department and basic manufacturing unit administration costs on the foundation of labor hours the staff labored in every of their respective departments.The next knowledge seem in the firm information for the present interval:.transtutors.com/qimg/oa0z4yimn9u3xsr1.png”>Common FactoryAdministration Upkeep Slicing AssemblyArea Occupied (sq. ft)……………………………………2,000—2,0006,000Labor Hours ……………………………………………………………..—200400600Direct Labor Costs (working departments solely)…. Service Department Direct Costs …………………………….$2,400$four,800$three,000$eight,000Use the step technique to allocate service departmentsâ costs to the working departments, beginning with upkeep.
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