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 From: Service department costs Accounting Facilities Total allocations Accounting 0.20 $ 110,000 Direct costs Total costs Facilities 0.50 0 $ 144,500 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. Accounting Using Department Training 0.20 0.20 $ 250,000 Facilities Independent 0.10 0.20 $ 193,000 Cost Allocation To: Training Commercial 0.20 0.40 $ 279,000 Independent Commercial

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
From:
Service department costs
Accounting
Facilities
Total allocations
Accounting
0
0.20
$ 110,000
Direct costs
Total costs
Facilities
0.50
0
$ 144,500
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.
Accounting
Using Department
Training
0.20
0.20
$ 250,000
Facilities
Independent
0.10
0.20
$ 193,000
Cost Allocation To:
Training
Commercial
0.20
0.40
$ 279,000
Independent
Commercial
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 From: Service department costs Accounting Facilities Total allocations Accounting 0 0.20 $ 110,000 Direct costs Total costs Facilities 0.50 0 $ 144,500 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. Accounting Using Department Training 0.20 0.20 $ 250,000 Facilities Independent 0.10 0.20 $ 193,000 Cost Allocation To: Training Commercial 0.20 0.40 $ 279,000 Independent Commercial
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