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Author Question: Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2. The ... (Read 43 times)

jrubin

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Question 1

When budgeted fixed costs are allocated based on actual usage, user departments will not know their fixed-cost allocations until the end of the budget period.
◦ true
◦ false

Question 2

Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2. 

The data for April were as follows: 

Services provided to:
ActivityCostsS1S2P1P2
S1$100,00020%40%50%
S2$80,00010%55%25%
Fixed Costs
P1$400,000
P2$500,000
Required: 
a.  Set up algebraic equations in linear form for each activity.
b.  Determine total costs for each department by solving the equations from part (a) using the reciprocal method.


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Marked as best answer by jrubin on Mar 6, 2021

orangecrush

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jrubin

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


ghepp

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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