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Chapter 11 Which of the following statements is incorrect? Service departments provide services to other departments. b. 1. a. Service departments are not the same as user departments. An intermediate cost center is any cost center whose costs are charged to other departments. A final cost center is any cost center whose costs are not allocated to other cost centers. C. d. ne following information is for questions 12- 14. company has two service departments (S1 and S2) and two manufacturing divisions (M1 and M2). lowing information is available. Proportion of services provided to: Costs Service Dired S2 M1 M2 incurred department $290,000 500,000 S1 30% 20% 50% 30% 20% S1 S2 50% Braw 10060) Using the direct method, what proportion of S1's costs will be allocated to M2? a. 20%. b.37.5%. 50%. 3080W c. d. 62.5%. (29000, 870w 1457 14 IOI fs 16 f8 19 f10 112 & insert prt sc de 8 backspace Using the direct method, how much of the service department costs will be allocated to M1? a. $195,250. b. $205,750. c. $308,750. d. $326,450. 13. Using the step method, how much of the service department costs will be allocated to M1? a. $243,000. b. $265,700. c. $295,400. d. $302,500. 14. The following information is for questions 15 -17. A joint production process that cost $240,000 generated two main products. P1 has 15,000 units and be sold at the split-off point for $300,000. P2 has 25,000 units and can be sold at the split-off point fc $200,000. A by-product can be sold for $30,000. f the inint costs would be allocated to %24

Chapter 11 Which of the following statements is incorrect? Service departments provide services to other departments. b. 1. a. Service departments are not the same as user departments. An intermediate cost center is any cost center whose costs are charged to other departments. A final cost center is any cost center whose costs are not allocated to other cost centers. C. d. ne following information is for questions 12- 14. company has two service departments (S1 and S2) and two manufacturing divisions (M1 and M2). lowing information is available. Proportion of services provided to: Costs Service Dired S2 M1 M2 incurred department $290,000 500,000 S1 30% 20% 50% 30% 20% S1 S2 50% Braw 10060) Using the direct method, what proportion of S1's costs will be allocated to M2? a. 20%. b.37.5%. 50%. 3080W c. d. 62.5%. (29000, 870w 1457 14 IOI fs 16 f8 19 f10 112 & insert prt sc de 8 backspace Using the direct method, how much of the service department costs will be allocated to M1? a. $195,250. b. $205,750. c. $308,750. d. $326,450. 13. Using the step method, how much of the service department costs will be allocated to M1? a. $243,000. b. $265,700. c. $295,400. d. $302,500. 14. The following information is for questions 15 -17. A joint production process that cost $240,000 generated two main products. P1 has 15,000 units and be sold at the split-off point for $300,000. P2 has 25,000 units and can be sold at the split-off point fc $200,000. A by-product can be sold for $30,000. f the inint costs would be allocated to %24

FINANCIAL ACCOUNTING
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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Chapter 11 Which of the following statements is incorrect? Service departments provide services to other departments. b. 1. a. Service departments are not the same as user departments. An intermediate cost center is any cost center whose costs are charged to other departments. A final cost center is any cost center whose costs are not allocated to other cost centers. C. d. ne following information is for questions 12- 14. company has two service departments (S1 and S2) and two manufacturing divisions (M1 and M2). lowing information is available. Proportion of services provided to: Costs Service Dired S2 M1 M2 incurred department $290,000 500,000 S1 30% 20% 50% 30% 20% S1 S2 50% Braw 10060) Using the direct method, what proportion of S1's costs will be allocated to M2? a. 20%. b.37.5%. 50%. 3080W c. d. 62.5%. (29000, 870w 1457
Transcribed Image Text:Chapter 11 Which of the following statements is incorrect? Service departments provide services to other departments. b. 1. a. Service departments are not the same as user departments. An intermediate cost center is any cost center whose costs are charged to other departments. A final cost center is any cost center whose costs are not allocated to other cost centers. C. d. ne following information is for questions 12- 14. company has two service departments (S1 and S2) and two manufacturing divisions (M1 and M2). lowing information is available. Proportion of services provided to: Costs Service Dired S2 M1 M2 incurred department $290,000 500,000 S1 30% 20% 50% 30% 20% S1 S2 50% Braw 10060) Using the direct method, what proportion of S1's costs will be allocated to M2? a. 20%. b.37.5%. 50%. 3080W c. d. 62.5%. (29000, 870w 1457
14 IOI fs 16 f8 19 f10 112 & insert prt sc de 8 backspace Using the direct method, how much of the service department costs will be allocated to M1? a. $195,250. b. $205,750. c. $308,750. d. $326,450. 13. Using the step method, how much of the service department costs will be allocated to M1? a. $243,000. b. $265,700. c. $295,400. d. $302,500. 14. The following information is for questions 15 -17. A joint production process that cost $240,000 generated two main products. P1 has 15,000 units and be sold at the split-off point for $300,000. P2 has 25,000 units and can be sold at the split-off point fc $200,000. A by-product can be sold for $30,000. f the inint costs would be allocated to %24
Transcribed Image Text:14 IOI fs 16 f8 19 f10 112 & insert prt sc de 8 backspace Using the direct method, how much of the service department costs will be allocated to M1? a. $195,250. b. $205,750. c. $308,750. d. $326,450. 13. Using the step method, how much of the service department costs will be allocated to M1? a. $243,000. b. $265,700. c. $295,400. d. $302,500. 14. The following information is for questions 15 -17. A joint production process that cost $240,000 generated two main products. P1 has 15,000 units and be sold at the split-off point for $300,000. P2 has 25,000 units and can be sold at the split-off point fc $200,000. A by-product can be sold for $30,000. f the inint costs would be allocated to %24
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