ashford_acc_380_week_2_dq_2_trust_...

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ashford_acc_380_week_2_dq_2_trust_...

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Running head: ACCOUNTING PROBLEMSAccounting ProblemsYOUR NAME(S)ACC/561DATEPROFESSORS NAME Accounting ProblemsEXCEL Application Exercise 12-59, Allocating Costs Using Direct and Step-Down Methods, on p. 584(Please see the attachment for the spreadsheet)1. What are the total costs for the Residential department using the direct method?$315,750What are the total costs for the Commercial department using the direct method?$484,2502. What are the total costs for the Residential department using the step-down method?$313,5003. What are the total costs for the Commercial department using the step-down method?$486,5004. Which method would you recommend that Antonio Cleaning use to allocate their service departments costs to their producing departments? Why?The Step-Down Method should be used because it is the best method when departments support each other.5. Question 13-B3, Comparison of Variable Costing and Absorption Costing, on p. 617Finished-goods inventory cost (absorption costing)Direct labor A$4,200 Direct materials used B3,500Fixed manufacturing overhead C2,200Variable manufacturing overhead D300Total cost of production E

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