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    Specified The Allocation Bases and The Order

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    happystone
    The document summarizes the allocation of variable and fixed costs across multiple service and operating departments using the step-down method. It shows the costs allocated to each department, with food receiving 193860 in variable costs allocated based on usage percentages, and admin receiving 158840. It then shows fixed costs allocated to housekeeping based on usage percentages and to food and admin based on allocation percentages. The total costs after allocation are provided for each department.

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    Specified The Allocation Bases and The Order

    Uploaded by

    happystone
    9 views3 pages
    The document summarizes the allocation of variable and fixed costs across multiple service and operating departments using the step-down method. It shows the costs allocated to each department, with food receiving 193860 in variable costs allocated based on usage percentages, and admin receiving 158840. It then shows fixed costs allocated to housekeeping based on usage percentages and to food and admin based on allocation percentages. The total costs after allocation are provided for each department.

    Original Description:

    adda

    Original Title

    Workings for Q6-11

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    The document summarizes the allocation of variable and fixed costs across multiple service and operating departments using the step-down method. It shows the costs allocated to each department, with food receiving 193860 in variable costs allocated based on usage percentages, and admin receiving 158840. It then shows fixed costs allocated to housekeeping based on usage percentages and to food and admin based on allocation percentages. The total costs after allocation are provided for each department.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    9 views3 pages

    Specified The Allocation Bases and The Order

    Uploaded by

    happystone
    The document summarizes the allocation of variable and fixed costs across multiple service and operating departments using the step-down method. It shows the costs allocated to each department, with food receiving 193860 in variable costs allocated based on usage percentages, and admin receiving 158840. It then shows fixed costs allocated to housekeeping based on usage percentages and to food and admin based on allocation percentages. The total costs after allocation are provided for each department.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 3

    Q6-11

    Question specified the allocation bases and the order of the Step-Down method of

    Service Departments
    Food
    193860

    Admin
    158840

    -193860

    2160

    Housekeeping
    Variable costs
    Allocation:
    Food:
    (800/71800; 2000/71800;
    and so on)
    Admin: (14/46; 7/46;
    and so on)

    161000
    -161000

    TOTAL Variable costs

    Fixed Costs
    Allocation:
    Housekeeping:
    (13/145; 6.5/145; 10/145;
    and so on)
    Food:
    (.8%; 2.4%; and so on)
    Admin:
    (30%; 20%; 50%)
    TOTAL Fixed costs
    TOTAL Costs after allocation

    87000

    107200

    90180

    -87000

    7800

    3900

    115000
    -115000

    920
    95000
    -95000

    der of the Step-Down method of allocation


    Operating Departments
    Laborartory
    Radiology
    Gen Hospital
    243600
    304800
    74500

    Checked total
    Total
    975600

    5400

    2700

    183600

    193860

    49000
    298000

    24500
    332000

    87500
    345600

    161000
    975600

    162300

    215700

    401300

    6000

    4500

    64800

    87000

    2760

    1840

    109480

    115000

    28500
    199560

    19000
    241040

    47500
    623080

    95000
    1063680

    497560

    573040

    968680

    2039280

    1063680

    hecked total

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