Assignm.. i Saved Help Save & Exit Submi Check my work State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows. 4 points Administration Communications Facilities $200,000 24,000 Loans $253,000 $8, 320, 000 $4,600, 000 360, 000 130 Deposits Direct costs Employee hours Number of employees Square footage occupied $290, 000 31,000 14 Skipped 20,500 447, 000 8 6. 230 4,600 13,800 5,100 244, 100 203, 300 The costs of the service departments are allocated on the following bases: Administration, employee-hours; Communications, number of employees; and Facilities, square footage occupied. eBook Required: a. Assume that the bank elects to distribute service department costs to production departments using the direct method. What amount of Communications Department costs is allocated to the Deposits Department? b. Assume the same method of allocation as in reguirement (a). What amount of Administration Department costs is allocated to the Loans Department? c. Assuming that the bank elects to distribute service department costs to other departments using the step method (starting with Facilities and then Communications), what amount of Facilities Department costs is allocated to the Communications Department? d. Assume the same method of allocation as in roquirement (c). What amount of Communication Department costs is allocated to Facilities? Print Complete this question by entering your answers in the tabs below. Required C Required D Required A Required B Assume that the bank elects to distribute service department costs to production departments using the direct method. What amount of Communications Department costs is allocated to the Deposits Department? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Amount < Prev 7 of B Next>

Assignm.. i Saved Help Save & Exit Submi Check my work State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows. 4 points Administration Communications Facilities $200,000 24,000 Loans $253,000 $8, 320, 000 $4,600, 000 360, 000 130 Deposits Direct costs Employee hours Number of employees Square footage occupied $290, 000 31,000 14 Skipped 20,500 447, 000 8 6. 230 4,600 13,800 5,100 244, 100 203, 300 The costs of the service departments are allocated on the following bases: Administration, employee-hours; Communications, number of employees; and Facilities, square footage occupied. eBook Required: a. Assume that the bank elects to distribute service department costs to production departments using the direct method. What amount of Communications Department costs is allocated to the Deposits Department? b. Assume the same method of allocation as in reguirement (a). What amount of Administration Department costs is allocated to the Loans Department? c. Assuming that the bank elects to distribute service department costs to other departments using the step method (starting with Facilities and then Communications), what amount of Facilities Department costs is allocated to the Communications Department? d. Assume the same method of allocation as in roquirement (c). What amount of Communication Department costs is allocated to Facilities? Print Complete this question by entering your answers in the tabs below. Required C Required D Required A Required B Assume that the bank elects to distribute service department costs to production departments using the direct method. What amount of Communications Department costs is allocated to the Deposits Department? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Amount < Prev 7 of B Next>

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5Q: For each cost pool, identify an appropriate cost driver. A. order department B. accounts receivable...

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