Useful Tool Company Useful Tool Company Has Two Service Departments (General Factory and (General

question 15

Essay

Useful Tool Company
Useful Tool Company has two service departments (General Factory and Repair)and two operating departments (Fabrication and Assembly).Management has decided to allocate repair costs on the basis of the area (square feet)in each department and to allocate General Factory on the basis of labor hours worked by the employees in each of their respective departments.
The following data appear in the company records for the current period:

The company allocates the costs from the General Factory Department first.
Refer to the Useful Tool Company.Using the direct method,what is the total amount of costs allocated to (a)the Fabrication Department and (b)the Assembly Department?

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Definitions:

Whole World

An expression referring to the entire planet Earth and all of its inhabitants and locations.

Direct Investment

The purchase or acquisition of a controlling interest in foreign assets, businesses, or real estate, typically involving a significant level of influence or management.

Film-manufacturing Facility

A specialized industrial site or factory where raw materials are transformed into photographic film or related media for photography and cinematography.