Answer:
Quality Manufacturers Ltd (QML)
Service Departments Production Dept
Equipment Quality Material Bending Welding
Maintenance Control Handling
Budgeted Costs $200,000 $120,000 $300,000 $600,000 $100,000
Quality Control 6,000 (120,000) 24,000 30,000 60,000
Maintenance (206,000) 0 61,800 144,200
Material Handling (324,000) 119,368 204,632
Total costs 0 0 0 $811,168 $508,832
Explanation:
a) Data and Calculations:
Equipment Maintenance Department
- Bending department 30%
- Welding department 70%
Quality Control Department
- Equipment Maintenance Department 5%
- Material Handling Department 20%
- Bending Department 25%
- Welding Department 50%
Material Handling Department
- Quality Control Department 5%
- Bending Department 35%
- Welding Department 60%
Service Departments Production Dept
Equipment Quality Material Bending Welding
Maintenance Control Handling
Budgeted Costs $200,000 $120,000 $300,000 $600,000 $100,000
Quality Control 6,000 (120,000) 24,000 30,000 60,000
Maintenance (206,000) 0 61,800 144,200
Material Handling (324,000) 119,368 204,632
Total costs 0 0 0 $811,168 $508,832
