Direct costs
RM180,000
RM150,000
RM122,000
RM90,500
Normal activity:
Number of employees
—
30
63
147
Maintenance hours
1,200
—
16,000
4,000
REQUIRED:
Calculate the cost assignment ratios to be used under the reciprocal method for S1, S2, Cutting, and Sewing. Carry out your answers to four decimal places.
Allocate the overhead costs to the producing departments by using the reciprocal method.
What methods can managers use to allocate costs of multiple support departments to operating departments? Explain the difference between these methods.
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please chepppu
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