Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed



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solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1
1
Administrative/HR 25%
2
Information Systems 10%
b
Allocate service departments on a ranking of the total monetary amount in the service departments.
1
Information Systems €2,400,000
2
Administrative/HR €600,000
c
Allocate service departments on a ranking of the euro amounts of service provided to other service departments
1
Information Systems
(0.10
×
€2,400,000) = €240,000
2
Administrative/HR
(0.25
×
€600,000) = €150,000
5.19
Manufacturing cost allocation, use of a conversion cost pool category, automation.
(20–30 min)
1
Total manufacturing overhead cost pool
= €270,000 Total direct manufacturing labour-hours
= 1,500 hours Manufacturing overhead rate (€270,000 ÷ 1,500) = €180 per hour Costs per instrument


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