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Exercise 11-29 (Algo) Cost Allocation: Step Method Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees. Department direct costs IT a. The order of allocation starts with IT. b. The order of allocation starts with HR 16 153,000 HR 1,400 $ 263,800 Publishing 1,400 24 $430,000 Required: Use the step method to allocate the service costs, using the following: Binding 4,200 40 $ 390,000

Exercise 11-29 (Algo) Cost Allocation: Step Method Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees. Department direct costs IT a. The order of allocation starts with IT. b. The order of allocation starts with HR 16 153,000 HR 1,400 $ 263,800 Publishing 1,400 24 $430,000 Required: Use the step method to allocate the service costs, using the following: Binding 4,200 40 $ 390,000

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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Exercise 11-29 (Algo) Cost Allocation: Step Method (LO 11-1) Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs. a. The order of allocation starts with IT. b. The order of allocation starts with HR. IT From: Service department costs HR IT Total costs 0 16 $ 153,000 S Required: Use the step method to allocate the service costs, using the following: HR HR Complete this question by entering your answers in the tabs below. 1,400 0 $ 263,800 0 $ Required A Require Use the step method to allocate the service costs, using the following: The order of allocation starts with HR. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Publishing 1,400 24 $430,000 Cost Allocation To: IT Publishing 0 $ PAVEL 0 $ Binding Binding 4,200 40 $ 390,000 0
Transcribed Image Text:Exercise 11-29 (Algo) Cost Allocation: Step Method (LO 11-1) Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs. a. The order of allocation starts with IT. b. The order of allocation starts with HR. IT From: Service department costs HR IT Total costs 0 16 $ 153,000 S Required: Use the step method to allocate the service costs, using the following: HR HR Complete this question by entering your answers in the tabs below. 1,400 0 $ 263,800 0 $ Required A Require Use the step method to allocate the service costs, using the following: The order of allocation starts with HR. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Publishing 1,400 24 $430,000 Cost Allocation To: IT Publishing 0 $ PAVEL 0 $ Binding Binding 4,200 40 $ 390,000 0
Exercise 11-29 (Algo) Cost Allocation: Step Method (LO 11-1) Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period. IT tickets teployees Department direct costs o. The order of allocation starts with IT b. The order of allocation starts with HR IT Required B 0 16 $ 153,000 Required: Use the step method to allocate the service costs, using the following: From: Service department costs IT HR Total costs 11 HR 1,400 0 $ 263,000 Complete this question by entering your answers in the tabs below. Publishing 1,400 24 Required A Use the step method to allocate the service costs, using the following: The order of allocation starts with IT Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. 0 $ $430,000 Cost Allocation To: HR Publishing 0 $ Binding 4,200 40 $ 390,000 Binding
Transcribed Image Text:Exercise 11-29 (Algo) Cost Allocation: Step Method (LO 11-1) Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period. IT tickets teployees Department direct costs o. The order of allocation starts with IT b. The order of allocation starts with HR IT Required B 0 16 $ 153,000 Required: Use the step method to allocate the service costs, using the following: From: Service department costs IT HR Total costs 11 HR 1,400 0 $ 263,000 Complete this question by entering your answers in the tabs below. Publishing 1,400 24 Required A Use the step method to allocate the service costs, using the following: The order of allocation starts with IT Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. 0 $ $430,000 Cost Allocation To: HR Publishing 0 $ Binding 4,200 40 $ 390,000 Binding
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