Part A: Using the direct method, provide the amounts of support department costs allocated to the production departments and the totals for the +production departments.
Part A: Using the direct method, provide the amounts of support department costs allocated to the production departments and the totals for the +production departments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Question 3
Simplicity Ltd provides you with the following information for two support departments and two production department. Support departments
provide services to each other and to the production departments.
Payroll
costs
S1 %
S2%
Departments
S1
$ 304,625
24%
S2
$ 280,979
23%
Departments
P1
$449,798
51%
49%
P2
$ 585,573
26%
100%
27%
100%
Part A: Using the direct method, provide the amounts of support department costs allocated to the production departments and the totals for the
+ production departments.
Payroll
costs
S1
S2
Totals
Departments
S1
S2
$ 304,625
$ 280,979
Departments
P1
P2
$449,798
$200411
$181158
$ 585,573
$104214
$99821
Total =
$831367
Total
=$789608 $1620975
Fill in the table below for the equations for the support departments using the reciprocal method (Note that you will need to rearrange the order
so that they align with the column headings:
Support Dept equation
S1
S2
S1
S2
Dept original dollar amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea27b1df-0bbb-46ad-acc8-ae72977f4a4f%2F36dcb875-6e25-4da4-be36-9c66757b7928%2Fkymsqow_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 3
Simplicity Ltd provides you with the following information for two support departments and two production department. Support departments
provide services to each other and to the production departments.
Payroll
costs
S1 %
S2%
Departments
S1
$ 304,625
24%
S2
$ 280,979
23%
Departments
P1
$449,798
51%
49%
P2
$ 585,573
26%
100%
27%
100%
Part A: Using the direct method, provide the amounts of support department costs allocated to the production departments and the totals for the
+ production departments.
Payroll
costs
S1
S2
Totals
Departments
S1
S2
$ 304,625
$ 280,979
Departments
P1
P2
$449,798
$200411
$181158
$ 585,573
$104214
$99821
Total =
$831367
Total
=$789608 $1620975
Fill in the table below for the equations for the support departments using the reciprocal method (Note that you will need to rearrange the order
so that they align with the column headings:
Support Dept equation
S1
S2
S1
S2
Dept original dollar amount
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