The service department costs to the revenue


Alice Gibbons owns and operates Alice's Abstracting Service. Alice's two revenue generating operations (Abstracting Services and Closing Services) are supported by two service departments: Clerical and Custodial. Costs in the service departments are allocated in the following order using the designated allocation bases.

  • Clerical: number of transactions processed
  • Custodial: square footage of space occupied

Average and expected activity levels for next month are as follows:
# of Transactions Square Footage Expected Costs

  • Abstract Services 50 1800
  • Closing Services 2200
  • Clerical 25 1600 $40,000
  • Custodial 5 $10,000

Required:the service department costs to the revenue generating departments. Provide the total costs for the revenue departments.

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Accounting Basics: The service department costs to the revenue
Reference No:- TGS0696290

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