The Chapman Manufacturing Company Has Two Service Departments - Manufacturing

question 2

Essay

The Chapman Manufacturing Company has two service departments - manufacturing support and facilities management, and two production departments - assembly and packing/shipping.The distribution of each service department's efforts to the other departments is shown below: The direct operating costs of the departments (including both variable and fixed costs) were as follows: $$\begin{array} { l r } \text { Manufacturing Support } & \$ 240,000 \\\text { Facilities Management } & 450,000 \\\text { Assembly } & 1,200,000 \\\text { Pack/Ship } & 225,000\end{array}$$ Required:
(calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):
(1) Allocate the service department costs to the production departments using the direct method.
(2) Allocate the service department costs to the production departments using the step method with the support department going first.
(3) Allocate the service department costs to the production departments using the reciprocal method.

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Definitions:

Synaptic Activity

The process by which neurons communicate with each other through the release and reception of neurotransmitters across synapses.

Electroencephalogram (EEG)

A recording of neural activity detected by electrodes.

Electrodes

Conductive materials that are used to make electrical contact with a nonmetallic part of a circuit, such as the human body.

Brain-Wave Recording

The process of measuring and recording the electrical activity of the brain, typically using electroencephalography (EEG).