The Product Data Center Has Been Servicing the Struble Production

question 2

Essay

The Product Data Center has been servicing the Struble Production Casting Department for five years. Beginning next year, the company is adding a Production Molding Department to compliment the materials produced by the Struble Production Casting Department. As a result, data center costs are expected to increase from $700,000 per year to $800,000 per year. The Production Molding Department will use 20% of the data center efforts.
Required:
a. Using the stand-alone cost-allocation method, identify the amount of data center cost that will be allocated to Struble Production Casting and the Production Molding Department next year.
b. Using the incremental cost-allocation method, identify the amount of data center cost that will be allocated to Struble Production Casting and the Production Molding Department next year.

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Definitions:

Mobile App

A software application developed specifically for use on small, wireless computing devices, like smartphones and tablets.

Enterprise Portal

A web-based platform that provides employees, and often customers, with access to corporate information and applications.

Technology Platform

A comprehensive technology framework that enables the development, running, and management of applications.

Talent Management Applications

Software or systems designed to help organizations recruit, manage, evaluate, and retain skilled employees.