Longworth Manufacturing has two producing departments, machining and assembly, and two servicedepartments, personnel and custodial. The company’s budget for April 20X1 is as follows:

Service Departments Production Departments
Personnel Custodial Machining Assembly
Direct department costs $45,000 $70,000 $600,000 $800,000
Square feet 2,000 1,000 10,000 25,000
Number of employees 15 30 200 250
Longworth allocates personnel costs on the basis of number of employees and custodial costs on thebasis of square feet.

Required:
a. Allocate personnel and custodial costs to the producing departments using the direct method.
b. Allocate personnel and custodial costs to the producing departments using the step-down method. Allocate personnel costs first.

Yang corporation starts a foreign subsidiary on january 1 by investing 20,000 rand. yang owns all of the shares of the subsidiary’s common stock. the foreign subsidiary generates 40,000 rand of net income throughout the year and pays no dividends. the rand is the foreign subsidiary’s functional currency. currency exchange rates for 1 rand are as follows: lo 10-3 january $0.25 = 1 rand average for the 0.28 = 1 december 0.31 = 1 in preparing consolidated financial statements, what translation adjustment will yang report at the end of the current year? a. $400 positive (credit). b. $1,000 positive (credit). c. $1,400 positive (credit). d. $2,400 positive (credit). hoyle, joe ben; hoyle, joe ben. advanced accounting (page 513). mcgraw-hill higher education. kindle edition.