Problem

Refer to the data given in the preceding problem. When Tampa Instrument Company establishe...

Refer to the data given in the preceding problem. When Tampa Instrument Company established its service departments, the following long–run needs were anticipate

Long-Run Service Needs (in hours of service)

Provider of Service

User of Service

HR

Maintenance

CAD

HR

Maintenance

500

CAD

1,000

800

 

Machining

3,500

4,800

4,800

Assembly

5,000

2,400

1,200

Total

10,000

8,000

6,000

Required: Use the dual approach in conjunction with each of the following methods to allocate Tampa Instrument Company's service department costs: (1) direct method and (2) step-down method.

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