Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the prevlous period follow. Repairs HR e IT M1 M2 Gerx Repairs HR e 4e% 10% 20% 35% 35% IT 20% 78% The direct costs of the service departments in the previous perlod were $88,000 for Repalrs. $107,600 for HR, and $198,000 for IT. Required: Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be Indicated by a minus sign. Do not round intermedlate calculations.) Repairs HR IT M1 M2 Service department costs Repairs allocation HR allocation IT allocation Total costs allocated
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the prevlous period follow. Repairs HR e IT M1 M2 Gerx Repairs HR e 4e% 10% 20% 35% 35% IT 20% 78% The direct costs of the service departments in the previous perlod were $88,000 for Repalrs. $107,600 for HR, and $198,000 for IT. Required: Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be Indicated by a minus sign. Do not round intermedlate calculations.) Repairs HR IT M1 M2 Service department costs Repairs allocation HR allocation IT allocation Total costs allocated
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1. Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)
Transcribed Image Text:Bens Corporation has three service departments (Repalrs, HR, and IT) and two production departments (M1 and M2). The following
usage data for each of the service departments for the prevlous period follow.
Repairs HR
IT
M1
M2
Repairs
HR
10%
35%
35%
IT
20%
78%
The direct costs of the service departments in the prevlous perlod were $8,000 for Repalrs, $107,600 for HR, and $198,000 for IT.
Required:
Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be
Indicated by a minus sign. Do not round intermediate calculations.)
Repairs
HR
IT
M1
M2
Service department costs
Repairs allocation
HR allocation
IT allocation
Total costs allocated
이 $
이 $
이 $
이 $
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