B.4.A. Salsa has two service departments, the IT Department and HR Department. Salsa has also two production departments, the Cutting department and the Mixing Department. The usage of the two service departments' output for the year is as follows: Provider of Service User of Service IT HR IT 5 % HR 10 % Cutting 40 % 25 % Mixing 50 % 70 % The budgeted costs in the two service departments for the year as follows: IT: $ 200,000 HR: $ 300,000 Use reciprocal services method to allocate the budgeted costs of the two service departments on production departments.

B.4.A. Salsa has two service departments, the IT Department and HR Department. Salsa has also two production departments, the Cutting department and the Mixing Department. The usage of the two service departments' output for the year is as follows: Provider of Service User of Service IT HR IT 5 % HR 10 % Cutting 40 % 25 % Mixing 50 % 70 % The budgeted costs in the two service departments for the year as follows: IT: $ 200,000 HR: $ 300,000 Use reciprocal services method to allocate the budgeted costs of the two service departments on production departments.

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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Vaughn Manufacturing has the following budgeted costs for the next year: Shop employees' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Invoice cost of parts and materials Total budgeted costs Time Charges O. $42. O $47. O $54. O $44. $125000 25000 15000 $165000 Material Charges $ 50000 20000 55000 450000 $575000 The labor rate to be used next year assuming 7500 hours of repair time and a profit margin of $25 per labor hour is >
Salsa has two service departments, the IT Department and HR Department. Salsa also has two production departments, the Cutting department and the Mixing Department. The usage of the two service departments’ output for the year is as follows: Provider of Service User of Service IT HR IT - 15 % HR 5 % - Cutting 45 % 25 % Mixing 50 % 60 % The budgeted costs in the two service departments for the year as follows: IT: $ 400,000 HR: $ 600,000 Use a.) direct method, b.) step-down method and c.) reciprocal services method to allocate the budgeted costs of the two service departments to production departments. Please donot provide solution in image format provide solution in step by step and fast solution
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Salsa has two service departments, the IT Department and HR Department. Salsa also has two production departments, the Cutting department and the Mixing Department. The usage of the two service departments’ output for the year is as follows: ---Provider of Service---- User of Service / IT /HR IT / - /15 % HR / 5 % / - Cutting / 45 % / 25 % Mixing / 50 % / 60 % The budgeted costs in the two service departments for the year as follows: IT: $ 400,000 HR: $ 600,000 Use a.) direct method, b.) step-down method and c.) reciprocal services method to allocate the budgeted costs of the two service departments to production departments.
4.B. Salsa has three service departments, the Maintenance Department, the IT Department and HR Department. Salsa has also two production departments, the Cutting department and the Mixing Department. The usage of the three service departments' output for the year is as follows: Provider of Service User of Service Maintenance IT HR Maintenance 5 % HR IT 10 % 5 % |Cutting 35 % 45% 65% Mixing 55 % 55% 25% The budgeted costs in the three service departments for the year as follows: Maintenance: $ 180,000 IT: $ 120,000 HR: $ 280,000 Use step-down method to allocate the budgeted costs of the three service departments on production departments.
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4- B.4.B. Salsa has two service departments, the IT Department and HR Department. Salsa has also two production departments, the Cutting department and the Mixing Department. The usage of the two service departments' output for the year is as follows: Provider of Service User of Service IT HR HR 15 % IT 5 % Cutting 45 % 65 % Mixing 40 % 30 % The budgeted costs in the two service departments for the year as follows: IT: $ 120,000 HR: $ 280,000 Use reciprocal services method to allocate the budgeted costs of the two service departments on production departments.
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