Ardvark Industries Has Two Production Departments,Assembly and Finishing and Three

question 72

Essay

Ardvark Industries has two production departments,Assembly and Finishing and three Service Departments,Personnel,Maintenance,and Cafeteria.Data relevant to Ardvark are: $$\begin{array} { | l | r | r | r | r | r | r | } \hline \text { Dept } & \begin{array} { r } \text { Direct } \\\text { Cost }\end{array} & \text { Persomel } & \text { Maintenance } & \text { Cafeteria } & \text { Assembly } & \text { Finishing } \\\hline \text { Personnel } & \$ 500,000 & & 0.10 & & 0.70 & 0.20 \\\hline \text { Maintenance } & 420,000 & & & & 0.80 & 0.20 \\\hline \text { Cafeteria } & 200,000 & 0.20 & 0.20 & & 0.30 & 0.30 \\\hline \text { Finishing } & 150,000 & & & & & \\\hline \text { Assembly } & 380,000 & & & & & \\\hline\end{array}$$
Required:
Allocate the service department costs of Ardvark Industries using the step-method of cost allocation.

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Definitions:

Full-Service Wholesaler

A wholesaling entity that provides a wide range of services to its customers, including storage, delivery, and product and market information.

Producer's Inventory

Refers to the goods and materials that a producer has in stock which are ready or will be ready for sale.

Brokers

Intermediaries that facilitate transactions between buyers and sellers in various markets, such as real estate or stocks, often for a commission or fee.

Independent Firms

Companies that operate on their own without being part of a larger corporation or group, often characterized by autonomy in decision-making.