Business, 22.04.2021 20:10 rivasalejandro854

Steven Parker owns and operates Steven's Septic Service and Legal Advice. Steven's two revenue generating (production) operations are supported by two service departments: Clerical and Janitorial. Costs in the service departments are allocated in the following order using the designated allocation bases: Clerical: Variable cost: expected number of work orders processed. Fixed cost: long-run average number of work orders processed. Janitorial: Variable cost: labor hours. Fixed cost: square footage of space occupied. Average and expected activity levels for next month (June) are as follows: No. of Work Orders Expected Average Labor Hours Square Footage Septic Service 50 80 720 1,960 Legal advice 25 20 1,000 2,360 Clerical 20 20 560 1,760 Janitorial 5 20 360 1,160 Expected costs in the service departments for June are as follows: Clerical Janitorial Variable costs $ 13,600 $ 5,800 Fixed costs $ 10,200 $ 960 Under the step method of allocation, how much Clerical Service cost should be allocated to the Septic Service operation for June

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Steven Parker owns and operates Steven's Septic Service and Legal Advice. Steven's two revenue gener...

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