Answer: $313,247
Explanation:
Independent lease cost :
Production department = $410,000
Finishing department = $360,000
Joint lease cost = $(410,000 + 360,000) - $100,000 = $670,000
Using the standard alone cost allocation method ;
Finishing department percentage is given by;
Finishing department independent cost ÷ (finishing department independent cost + production department independent cost)
$360,000 ÷ ($360,000 + $410,000)
$360,000 ÷ $770,000
0.4675324467 = 46.75324467%
Therefore, finishing department share of the joint lease cost will be ;
0.4675324467 × $670,000 = $313,246. 73
$313,247
