Chance Corporation allocates its service department costs to its production departments using the direct method. Information for June 2001 follows:
|
Personnel |
Maintenance |
|
|
Service department costs |
$68,000 |
$50,000 |
|
Services provided to other departments |
||
|
Personnel |
10% |
|
|
Maintenance |
15% |
|
|
Fabricating |
45% |
60% |
|
Finishing |
40% |
30% |
a. What amount of personnel and maintenance costs should be assigned to Fabricating for June?
b. What amount of personnel and maintenance costs should be assigned to Finishing for June?