Unformatted text preview: g between two cost center arrangements. The first possibility is to make the entire organization into one cost
center; the second is to use three cost centers: mowing, special projects, and administration. Cost data are available for administrative
supplies ($14,425), mowing supplies ($13,575), special project supplies ($12,000), administrative salaries ($40,000), mowing salaries
($50,000), special project salaries ($35,000), and the contracted maintenance services for the trucks the company uses to transport its
mowers to job sites ($10,000).
David W. Young • Management Accounting for Managers • Chapter 1
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As with the prior problem, the company provided 15,625 hours of lawn care services (11,772 hours of mowing plus 3,853 hours
of special projects) last year. What would its the costs be under the one-cost-center ap...
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This document was uploaded on 03/30/2014.
- Spring '14