Question

match the following ​

Answer 1

Explanation:

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.