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Exercise 11-32 (Algo) Cost Allocation: Reciprocal 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 From: Service department costs IT HR IT Total 0 20 $ 150,000 HR 1,510 0 $247,600 Publishing 2,416 30 $430,400 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Cost Allocation To: HR Publishing Binding 2,114 50 $ 391,000 0 $ Binding

Exercise 11-32 (Algo) Cost Allocation: Reciprocal 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 From: Service department costs IT HR IT Total 0 20 $ 150,000 HR 1,510 0 $247,600 Publishing 2,416 30 $430,400 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Cost Allocation To: HR Publishing Binding 2,114 50 $ 391,000 0 $ Binding

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 11-32 (Algo) Cost Allocation: Reciprocal 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 From: Service department costs IT HR Total IT 0 20 $ 150,800 S Required: Allocate the service department costs using the reciprocal method: (Matrix algebra is not required because there are only two service departments) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. IT TURMA HR 1,510 O $ 247,600 0$ Publishing 2,416 30 $430,400 Cost Allocation To: HR Publishing 0 $ Binding 2,114 50 $. 391,000 0 $ Binding ESCO
Transcribed Image Text:Exercise 11-32 (Algo) Cost Allocation: Reciprocal 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 From: Service department costs IT HR Total IT 0 20 $ 150,800 S Required: Allocate the service department costs using the reciprocal method: (Matrix algebra is not required because there are only two service departments) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. IT TURMA HR 1,510 O $ 247,600 0$ Publishing 2,416 30 $430,400 Cost Allocation To: HR Publishing 0 $ Binding 2,114 50 $. 391,000 0 $ Binding ESCO
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