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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 10,800 $ 350,000 Legal 40 $ 210,000 Eastern 120 5,400 $ 1,250,000 Western 40 1,800 $ 840,000 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.

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 10,800 $ 350,000 Legal 40 $ 210,000 Eastern 120 5,400 $ 1,250,000 Western 40 1,800 $ 840,000 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Required A Complete this question by entering your answers in the tabs below. Show Transcribed Text Personnel Required A 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. Department costs Personnel allocation Legal allocation Total costs 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. Legal Required B Required C Personnel 10,800 $ 350,000 Personnel $ Complete this question by entering your answers in the tabs below. 0 $ Legal Eastern Legal $ 210,000 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. Allocate the cost of the service departments to the operating divisions using the direct method. Note: Amounts to be deducted should be indicated by a minus sign. 0 $ 40 Western Eastern 3 Eastern 0 $ 120 5,400 $ 1,250,000 Western Western 0 40 1,800 $ 840,000
Transcribed Image Text: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 Required A Complete this question by entering your answers in the tabs below. Show Transcribed Text Personnel Required A 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. Department costs Personnel allocation Legal allocation Total costs 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. Legal Required B Required C Personnel 10,800 $ 350,000 Personnel $ Complete this question by entering your answers in the tabs below. 0 $ Legal Eastern Legal $ 210,000 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. Allocate the cost of the service departments to the operating divisions using the direct method. Note: Amounts to be deducted should be indicated by a minus sign. 0 $ 40 Western Eastern 3 Eastern 0 $ 120 5,400 $ 1,250,000 Western Western 0 40 1,800 $ 840,000
Complete this question by entering your answers in the tabs below. Required A Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal. 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. From Department costs Legal allocation Personnel allocation Total costs Required B Required C Show Transcribed Text Required A Costs Personnel Legal Total $ Legal Required B Required C $ 0 $ Personnel Personnel 0 $ To Complete this question by entering your answers in the tabs below. 0 $ < Required A Legal Eastern 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. 0 $ Ű 0 $ Eastern Western Required C > 0 $ Western 0 0
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required A Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal. 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. From Department costs Legal allocation Personnel allocation Total costs Required B Required C Show Transcribed Text Required A Costs Personnel Legal Total $ Legal Required B Required C $ 0 $ Personnel Personnel 0 $ To Complete this question by entering your answers in the tabs below. 0 $ < Required A Legal Eastern 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. 0 $ Ű 0 $ Eastern Western Required C > 0 $ Western 0 0
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