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Author Question: Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2. The ... (Read 74 times)

jrubin

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on: Mar 6, 2021

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
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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$100,000​20%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.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by jrubin on Mar 6, 2021

orangecrush

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Reply #1 on: Mar 6, 2021
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jrubin

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

nguyenhoanhat

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Reply 3 on: Yesterday
Wow, this really help

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