Young management accounting for managers chapter 1

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Unformatted text preview: ____________________________________________________________________________________________ David W. Young • Management Accounting for Managers • Chapter 1 Page 9 Copyrighted Material. Do not reproduce without written permission. Answer: We now have an additional service center, giving us two service centers and two production centers. Our total costs now look as follows: Service Centers Production Centers Cost items Maintenance Administration Mowing Special Projects Total Salaries $20,000 $40,000 $ 50,000 $35,000 $145,000 Supplies 5,000 14,425 13,575 12,000 45,000 Contracted Serv. 10,000 10,000 ----------------------------------------------------Total $25,000 $54,425 $73,575 $47,000 $200,000 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••...
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