Question 13 Show Transcribed Image Text:Chapter 11 Which of the following statements is incorrect? Service departments provide services to other departments. b. 1. a. Service departments are not the same as user departments. An intermediate cost center is any cost center whose costs are charged to other departments. A final cost center is any cost center whose costs are not allocated to other cost centers. C. d. ne following information is for questions 12- 14. company has two service departments (S1 and S2) and two manufacturing divisions (M1 and M2). lowing information is available. Proportion of services provided to: Costs Service Dired S2 M1 M2 incurred department $290,000 500,000 S1 30% 20% 50% 30% 20% S1 S2 50% Braw 10060) Using the direct method, what proportion of S1's costs will be allocated to M2? a. 20%. b.37.5%. 50%. 3080W c. d. 62.5%. (29000, 870w 1457 Transcribed Image Text:14 IOI fs 16 f8 19 f10 112 & insert prt sc de 8 backspace Using the direct method, how much of the service department costs will be allocated to M1? a. $195,250. b. $205,750. c. $308,750. d. $326,450. 13. Using the step method, how much of the service department costs will be allocated to M1? a. $243,000. b. $265,700. c. $295,400. d. $302,500. 14. The following information is for questions 15 -17. A joint production process that cost $240,000 generated two main products. P1 has 15,000 units and be sold at the split-off point for $300,000. P2 has 25,000 units and can be sold at the split-off point fc $200,000. A by-product can be sold for $30,000. f the inint costs would be allocated to %24 Knowledge Booster Learn more about Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below. Recommended textbooks for you
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Which of the following principles should be applied when the step method of allocating service department costs is used?Which of the following principles should be applied when the step method of allocating service department costs is used? The sequence of allocation among departments should be randomly selected.
When allocating service department costs companies should use?Each service department should have at least one variable and one fixed cost pool. When allocating costs of service departments, using budgeted cost rates rather than actual cost rates protects the using departments from price changes and inefficiencies in the service departments.
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