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 0.20 $ 190,000 Facilities 0.40 8 $ 184,500 Using Department Training 0.30 0.20 $ 330,000 Independent 9.20 0.29 $ 201,000 Commercial 8.10 0.40 $ 287,000 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?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Exercise 11-31 (Algo) Cost Allocation: Reciprocal Method, Two Service Departments (LO 11-1)
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
8
0.20
$ 190,000
Direct costs
Total costs
Facilities
0.40
$ 184,500
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
0.30
0.20
$ 330,000
Facilities
Independent
0.20
0.20
$ 201,000
Cost Allocation To:
Training
Commercial
0.10
0.40
$ 287,000
Independent
Commercial
Transcribed Image Text:Exercise 11-31 (Algo) Cost Allocation: Reciprocal Method, Two Service Departments (LO 11-1) 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 8 0.20 $ 190,000 Direct costs Total costs Facilities 0.40 $ 184,500 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 0.30 0.20 $ 330,000 Facilities Independent 0.20 0.20 $ 201,000 Cost Allocation To: Training Commercial 0.10 0.40 $ 287,000 Independent Commercial
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