Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations follows: Employees Hours Department direct costs Personnel Costs Personnel Legal 10,800 $ 320,000 Total Complete this question by entering your answers in the tabs below. $ 320,000 $ Legal $ 180,000 Required: a. Allocate the cost of the service departments to the operating divisions using the direct method. b. Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal. c. Allocate the cost of the service departments to the operating divisions using the reciprocal method. Eastern Western Personnel Legal 320,000 $ 180,000 $1,220,000$ 810,000 180,000 $1,220,000 $ Required A Required B Required C Allocate the cost of the service departments to the operating divisions using the reciprocal method. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar values. Amounts to be deducted should be indicated by a minus sign. < Required B Eastern 810,000 120 5,400 $1,220,000 Required C > Western 40 1,800 $ 810,000
Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations follows: Employees Hours Department direct costs Personnel Costs Personnel Legal 10,800 $ 320,000 Total Complete this question by entering your answers in the tabs below. $ 320,000 $ Legal $ 180,000 Required: a. Allocate the cost of the service departments to the operating divisions using the direct method. b. Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal. c. Allocate the cost of the service departments to the operating divisions using the reciprocal method. Eastern Western Personnel Legal 320,000 $ 180,000 $1,220,000$ 810,000 180,000 $1,220,000 $ Required A Required B Required C Allocate the cost of the service departments to the operating divisions using the reciprocal method. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar values. Amounts to be deducted should be indicated by a minus sign. < Required B Eastern 810,000 120 5,400 $1,220,000 Required C > Western 40 1,800 $ 810,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
jgdish
Transcribed Image Text:Help, just need Required C Thank you
Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel
costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations
follows:
Employees
Hours
Department direct costs
Costs
Personnel
Legal
Personnel
Total
G
10,800
$ 320,000
Complete this question by entering your answers in the tabs below.
$
320,000 $
Eastern
Personnel Legal
320,000 $ 180,000 $1,220,000 $
Legal
Required:
a. Allocate the cost of the service departments to the operating divisions using the direct method.
b. Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal.
c. Allocate the cost of the service departments to the operating divisions using the reciprocal method.
$ 180,000
180,000 $1,220,000 $
<Required B
40
Required A Required B Required C
Allocate the cost of the service departments to the operating divisions using the reciprocal method.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar values. Amounts to be
deducted should be indicated by a minus sign.
Western
810,000
Eastern
810,000
120
5,400
$1,220,000
Required C >
Western
40
1,800
$ 810,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education