Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow 17 Accounting HR 11 Ox 10% HR allocation Total costs allocated Service department costs IT alocation Accounting alocation Accounting OK 10% HR 20% Of 40% 405 60% 201 The direct costs of the service departments in the previous period were $90,500 for IT, $114,000 for Accounting, and $150,000 for HR. Required: Use the direct method to allocate the service department costs to the production departments Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. 40% GOX Accounting HR West East
Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow 17 Accounting HR 11 Ox 10% HR allocation Total costs allocated Service department costs IT alocation Accounting alocation Accounting OK 10% HR 20% Of 40% 405 60% 201 The direct costs of the service departments in the previous period were $90,500 for IT, $114,000 for Accounting, and $150,000 for HR. Required: Use the direct method to allocate the service department costs to the production departments Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. 40% GOX Accounting HR West East
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West
and East). The usage data for each of the service departments for the previous period follow
Accounting
IT
Accounting
HR
IT
OX
10%
HR allocation
Total costs allocated
Service department costs
IT alocation
Accounting allocation
10%
HR West Fast
20%
40%
40%
05
60%
20%
The direct costs of the service departments in the previous period were $90,500 for IT, $114,000 for Accounting, and $150,000 for HR.
40%
60%
Required:
Use the direct method to allocate the service department costs to the production departments
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.
IT Accounting HR
West
East
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