The following information relates to Osceola Corporation for the past accounting period.Service Department AService Department BProducing Department CProducing Department DProportion of service by A to:10%60%30%BUDCProportion of service by B to:30%20%50%RUDAсUsing the reciprocal (simultaneous solution) method, Department A's cost allocated to Department C (rounded to the nearest whole dollar) is:Multiple Choice$76,800Direct costs$110,00070,60028,20028,600$81,142.$66,000.$116,000

The indirect Costs include the costs that are not related directly to the production. The various…

Service Department A Service Department B Producing Department C Producing Department D B C D Proportion of service by A to: 10% RCD A Proportion of service by B to: 30% 20% 50% Multiple Choice $76,800 $81,142. Direct costs 60% 30% sing the reciprocal (simultaneous solution) method, Department A's cost allocated to Department C (rounded to the nearest whole dollar) is $66,000 $110,000 70,600 28,200 28,600 $116,000 for the past accounting period.

Service Department A Service Department B Producing Department C Producing Department D B C D Proportion of service by A to: 10% RCD A Proportion of service by B to: 30% 20% 50% Multiple Choice $76,800 $81,142. Direct costs 60% 30% sing the reciprocal (simultaneous solution) method, Department A's cost allocated to Department C (rounded to the nearest whole dollar) is $66,000 $110,000 70,600 28,200 28,600 $116,000 for the past accounting period.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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