Hair supplies by contrast are variable coststhey will

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: er 1 Page 21 Copyrighted Material. Do not reproduce without written permission. PRACTICE CASE. MOSSY BOG TRANSPORTATION AGENCY The Mossy Bog Transportation Agency (MBTA) has two service departments (maintenance and administration) and two mission departments (rapid transit and slow transit). Rapid Transit uses high-speed trains and is highly equipment-intensive, while Slow Transit, using rickshaws, is highly labor-intensive. Management has decided to allocate maintenance costs on the basis of depreciation dollars in each department, and administration costs on the basis of labor hours worked by the employees in each department. The following data appear in the agency's records for the current period: Service Centers Production Centers Maintenance Administration Rapid Transit Slow Transit Direct plus distributed costs ($000) Depreciation dollars ($000) (1) Labor hours Total $1,160 $2,400 $8,000 $4,000 $15,560 $200 $2,000 $3,000 $ 800 $6,000 20,000 10,000 10,000 40,000 Note (1). Depreciation dollars are included in the direct cost figures. For...
View Full Document

This document was uploaded on 03/30/2014.

Ask a homework question - tutors are online