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Author Question: The Maintenance Department has been servicing Gizmo Production for four years. Beginning next year, ... (Read 64 times)

brutforce

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The Maintenance Department has been servicing Gizmo Production for four years. Beginning next year, the company is adding a Scrap-Processing Department to recycle the materials from Gizmo Production. As a result, maintenance costs are expected to increase from $460,000 per year to $525,000 per year. The Scrap-Processing Department will use 25% of the maintenance efforts. 

Required:
a.  Using the stand-alone cost-allocation method, identify the amount of maintenance cost that will be allocated to Gizmo Production and the Scrap-Processing Department next year. 

b.  Using the incremental cost-allocation method, identify the amount of maintenance cost that will be allocated to Gizmo Production and the Scrap-Processing Department next year.


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Marked as best answer by brutforce on Mar 6, 2021

heyhey123

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brutforce

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


duy1981999

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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