The table below relates to a company's factory that is split into two departments; each department contains a metre to record the consumption of electricity. The following data is provided: Department Y. Area (Square Metres) Electricity Expense Allocated 30,000 $12,000 20,000 $28.000 The rent for the year is $200,000. The total amounts for rent and electricity that should be attributed to Department X & Y respectively is? Department X $120,000 $108,000 $132,000 $12,000 Department Y $80,000 $132.000 $108,000 $28,000 IV The total amounts for rent and electricity that should be attributed to Department X & Y respectively is? O a. I O b. IV O.II O d. I Next page
The table below relates to a company's factory that is split into two departments; each department contains a metre to record the consumption of electricity. The following data is provided: Department Y. Area (Square Metres) Electricity Expense Allocated 30,000 $12,000 20,000 $28.000 The rent for the year is $200,000. The total amounts for rent and electricity that should be attributed to Department X & Y respectively is? Department X $120,000 $108,000 $132,000 $12,000 Department Y $80,000 $132.000 $108,000 $28,000 IV The total amounts for rent and electricity that should be attributed to Department X & Y respectively is? O a. I O b. IV O.II O d. I Next page
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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