Flinders Company Has Two Service Departments, Factory Administration and Maintenance

question 14

Essay

Flinders Company has two service departments, Factory Administration and Maintenance, and two operating departments. Selected information relating to these departments is given below: The company allocates service department costs by the step-down method. Costs of Factory Administration are allocated first on the basis of number of employees, and then costs of Maintenance are allocated on the basis of total labor hours.
Required:
Prepare a schedule showing the allocation of service department costs to other departments.

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Definitions:

Behaviourist

A psychologist who studies and interprets behavior as a function of environmental histories of reinforcing consequences.

Gestalt Psychologist

A psychologist specializing in the study of perception and learning, emphasizing the idea that the whole is more than the sum of its parts.

Structuralist

An approach in various academic disciplines that analyzes elements of human culture, psychology, or society in terms of their relationship to a larger, overarching system or structure.

Psychoanalyst

A therapist trained in Freudian methods who seeks to analyze and treat mental disorders through exploring the unconscious mind.