An electrical repair service company has produced the following budget for the y House repairs Total £ Received from customers Variable costs Fixed costs (apportioned) Profit (loss) Office repairs £ 45,000 (24,000) (7,000) 14,000 24,000 (18,000) (8,000) (2,000) 69,000 (42,000) (15,000) 12,000 The fixed costs, which relate to rent and insurance, will be incurred irrespective activity carried out. Which of the following decisions is supported by the informa table? A) If the company ceases to carry out house repairs, it will increase total pro 11.000

An electrical repair service company has produced the following budget for the y House repairs Total £ Received from customers Variable costs Fixed costs (apportioned) Profit (loss) Office repairs £ 45,000 (24,000) (7,000) 14,000 24,000 (18,000) (8,000) (2,000) 69,000 (42,000) (15,000) 12,000 The fixed costs, which relate to rent and insurance, will be incurred irrespective activity carried out. Which of the following decisions is supported by the informa table? A) If the company ceases to carry out house repairs, it will increase total pro 11.000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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