Required: 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has. the following labor hours devoted by each of the service departments to the other departments. The costs incurred in the plant are as follows: Required: 1. What are the costs allocated to the two production deportments using (o) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocotion? (For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
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Required- 1- What are the costs allocated to the two production depart.docx
1. Required: 1. What are the costs allocated to the two production departments using (a) the direct
method, (b) the step method, when the sourcing department that provides the greatest percentage
of services to other service departments goes first, and (c) the reciprocal method? 2. What are the
total costs in the production departments after allocation? (For all requirements, do not round
intermediate calculations. Round your final answers to nearest whole dollar amount.) Logan
Products has two production departments-assembly and finishing. These are supported by two
service departments-sourcing (purchasing and handling of materials and human resources) and
operations (work scheduling, supervision, and inspection). Logan has. the following labor hours
devoted by each of the service departments to the other departments. The costs incurred in the
plant are as follows: Required: 1. What are the costs allocated to the two production deportments
using (o) the direct method, (b) the step method, when the sourcing department that provides the
greatest percentage of services to other service departments goes first, and (c) the reciprocal
method? 2. What are the total costs in the production departments after allocotion? (For all
requirements, do not round intermediate calculations. Round your final answers to nearest whole
dollar amount.)
