The Product Data Centre Has Been Servicing the Billabong Casting

question 5

Essay

The Product Data centre has been servicing the Billabong Casting Department for five years.Beginning next year,the company is adding a Billabong Moulding Department to complement the materials produced by the Billabong Casting Department.As a result,data centre costs are expected to increase from $950 000 per year to $1 150 000 per year.The Billabong Moulding Department will use 20% of the data centre efforts.
Required:
a.Using the stand-alone cost-allocation method,identify the amount of data centre cost that will be allocated to Billabong Casting and the Billabong Moulding Department next year.
b.Using the incremental cost-allocation method,identify the amount of data centre cost that will be allocated to Billabong Casting and the Billabong Moulding Department next year.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

---

Definitions:

Nature of Results

The inherent characteristics or outcomes that emerge from a particular process or action.

Scientists

Individuals engaged in systematic activities to acquire knowledge about the natural world through observation and experimentation.

Target Audience

A specific group of people identified as the intended recipients of a message, product, or service.

Journalists

Professionals who collect, write, or distribute news and information, working in various media such as newspapers, television, and the internet.