Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR),Legal, and Testing. In the most recent period, the following costs and service department usage ratios were recorded:Supplying DepartmentHuman ResourcesLegalTestingDirect costFrom:Human ResourcesLegalTestingTotalHuman ResourcesCosts10%10%$ 264,500$Allocated to:DomesticLegal0 $15%00$ 190,000Required:Allocate the service department costs to the two operating departments using the reciprocal method.Note: Do not round intermediate calculations.GlobalUsing DepartmentTesting010%00$ 90,000Domestic50%60%45%$ 541,000Global25%30%45%$ 490,000

Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR), Legal, and Testing. In the most recent period, the following costs and service department usage ratios were recorded: Supplying Department Human Resources Legal Testing Direct cost Human Resources 0 10% 10% $ 264,500 Legal 15% 0 0 $ 190,000 Using Department Testing 10% 0 0 $ 90,000 Domestic 50% 60% 45% $ 541,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. intermediato calculations Global 25% 30% 45% $ 490,000

Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR), Legal, and Testing. In the most recent period, the following costs and service department usage ratios were recorded: Supplying Department Human Resources Legal Testing Direct cost Human Resources 0 10% 10% $ 264,500 Legal 15% 0 0 $ 190,000 Using Department Testing 10% 0 0 $ 90,000 Domestic 50% 60% 45% $ 541,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. intermediato calculations Global 25% 30% 45% $ 490,000

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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Subject :- Accounting
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