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oodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating epartments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with ea quest) in each department and HR costs on the basis of employees in each department. he following data appear in the company records for the current period: IT tickets Employees Department direct costs equired: IT 0 16 $ 154,000 HR 1,400 $ 251,200 i Publishing 1,400 24 $ 430,000 Binding 4,200 40 $ 390,000

oodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating epartments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with ea quest) in each department and HR costs on the basis of employees in each department. he following data appear in the company records for the current period: IT tickets Employees Department direct costs equired: IT 0 16 $ 154,000 HR 1,400 $ 251,200 i Publishing 1,400 24 $ 430,000 Binding 4,200 40 $ 390,000

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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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 a. The order of allocation starts with IT. b. The order of allocation starts with HR. Required A Required B Required: Use the step method to allocate the service costs, using the following: IT From: Service department costs IT HR Total costs 0 16 $ 154,000 Complete this question by entering your answers in the tabs below. $ IT HR 1,400 0 $ 251, 200 0 0 0 $ Use the step method to allocate the service costs, using the following: The order of allocation starts with IT. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Cost Allocation To: HR (38,500) Required A Publishing 1,400 24 $ 430,000 38,500 $ Publishing 0 S Binding Binding 4,200 40 $ 390,000 61,600 $ 117,300 178,900 $ Required B > 53,900 181,063 234,963
Transcribed Image Text: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 a. The order of allocation starts with IT. b. The order of allocation starts with HR. Required A Required B Required: Use the step method to allocate the service costs, using the following: IT From: Service department costs IT HR Total costs 0 16 $ 154,000 Complete this question by entering your answers in the tabs below. $ IT HR 1,400 0 $ 251, 200 0 0 0 $ Use the step method to allocate the service costs, using the following: The order of allocation starts with IT. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Cost Allocation To: HR (38,500) Required A Publishing 1,400 24 $ 430,000 38,500 $ Publishing 0 S Binding Binding 4,200 40 $ 390,000 61,600 $ 117,300 178,900 $ Required B > 53,900 181,063 234,963
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