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 IT 0% 10% The direct costs of the service departments in the previous period were $253,180 for IT, $100,700 for Accounting, and $114,200 for HR IT Accounting HR Accounting HR West East 0% 20% 40% 40% 0% 40% 60% 20% 60% Allocation Service department costs Required: Use the reciprocal method to allocate the service department costs to the production departments. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. IT allocation Accounting allocation HR allocation Total costs allocated 10% $ IT Accounting 0 $ 0 $ HR 0 $ West 0 $ East 0

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 IT 0% 10% The direct costs of the service departments in the previous period were $253,180 for IT, $100,700 for Accounting, and $114,200 for HR IT Accounting HR Accounting HR West East 0% 20% 40% 40% 0% 40% 60% 20% 60% Allocation Service department costs Required: Use the reciprocal method to allocate the service department costs to the production departments. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. IT allocation Accounting allocation HR allocation Total costs allocated 10% $ IT Accounting 0 $ 0 $ HR 0 $ West 0 $ East 0

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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