Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service departments (Accounting and Facilities) at DuBay Films for the past month follow Supplying Department Accounting Facilities Direct cost Accounting 0 0.10 $ 260,000 Facilities Using Department Training Independent Commercial 0.40 0.20 0 0.10 0.10 0.20 $ 219,500 $ 400,000 $ 208,000 0.30 0.60 $ 294,000 Required: Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. From: Service department costs Accounting Facilities Total allocations Direct costs Total costs Cost Allocation To: Accounting Facilities Training Independent Commercial $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 S 0 $ 0 $ 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Manji 

Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service departments
(Accounting and Facilities) at DuBay Films for the past month follow
Supplying Department
Accounting
Facilities
Direct cost
Accounting
0
0.10
$ 260,000
Facilities
Using Department
Training
Independent
Commercial
0.40
0.20
0
0.10
0.10
0.20
$ 219,500
$ 400,000
$ 208,000
0.30
0.60
$ 294,000
Required:
Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of
Training, Independent, and Commercial after this allocation?
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final
answers to the nearest whole dollar amounts.
From:
Service department costs
Accounting
Facilities
Total allocations
Direct costs
Total costs
Cost Allocation To:
Accounting
Facilities
Training
Independent
Commercial
$
0 $
0 $
0 $
0 $
0
$
0
$
0
S
0 $
0 $
0
Transcribed Image Text:Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service departments (Accounting and Facilities) at DuBay Films for the past month follow Supplying Department Accounting Facilities Direct cost Accounting 0 0.10 $ 260,000 Facilities Using Department Training Independent Commercial 0.40 0.20 0 0.10 0.10 0.20 $ 219,500 $ 400,000 $ 208,000 0.30 0.60 $ 294,000 Required: Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. From: Service department costs Accounting Facilities Total allocations Direct costs Total costs Cost Allocation To: Accounting Facilities Training Independent Commercial $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 S 0 $ 0 $ 0
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