Interdepartment Services: Step Method Jane Cooper's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. Copper's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the bas of gross payroll. Cost and allocation information for June is as follows: Direct department cost Number of employees Gross payroll Personnel Payroll Housewares Clothing Furniture $15,600 $6,400 15 12 $12,000 $6,600 $ 24,400 $ 40,000 24 32 $21,200 $26,100 $33,500 12 $ 16,200 (a) Determine the percentage of total Personnel Department services that was provided to the Payroll Department. (Round your answer to one decimal place.). 0 %6 (b) Determine the percentage of total Payroll Department services that was provided to the Personnel Department. (Round your answer one decimal place.) 0 % (c) Prepare a schedule showing Personnel Department and Payroll Department cost allocations to the operating departments, assuming Cooper's uses the step method. For each department below, enter the total costs calculated from your schedule.
Interdepartment Services: Step Method Jane Cooper's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. Copper's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the bas of gross payroll. Cost and allocation information for June is as follows: Direct department cost Number of employees Gross payroll Personnel Payroll Housewares Clothing Furniture $15,600 $6,400 15 12 $12,000 $6,600 $ 24,400 $ 40,000 24 32 $21,200 $26,100 $33,500 12 $ 16,200 (a) Determine the percentage of total Personnel Department services that was provided to the Payroll Department. (Round your answer to one decimal place.). 0 %6 (b) Determine the percentage of total Payroll Department services that was provided to the Personnel Department. (Round your answer one decimal place.) 0 % (c) Prepare a schedule showing Personnel Department and Payroll Department cost allocations to the operating departments, assuming Cooper's uses the step method. For each department below, enter the total costs calculated from your schedule.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Interdepartment Services: Step Method
Jane Cooper's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the
operating departments, Personnel and Payroll provide services to each other. Copper's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the basis
of gross payroll. Cost and allocation information for June is as follows:
Direct department cost
Number of employees
Gross payroll
Personnel Payroll Housewares Clothing Furniture
$15,600 $6,400
15
$ 33,500
$ 24,400 $40,000
24
12
12
$ 12,000 $6,600
$ 21,200 $26,100
$ 16,200
(a) Determine the percentage of total Personnel Department services that was provided to the Payroll Department. (Round your answer to one decimal place.)
0
%
%
(b) Determine the percentage of total Payroll Department services that was provided to the Personnel Department. (Round your answer one decimal place.)
0
Total costs $
(c) Prepare a schedule showing Personnel Department and Payroll Department cost allocations to the operating departments, assuming Cooper's uses the step method.
your schedule.
For each department below, enter the total costs calculated from
Do not round until your final answers. Round answers to the nearest dollar.
Service Departments
Personnel Payroll Housewares
Producing Departments
Clothing
32
0 $
0 $
0 $
Furniture
0 $
0
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