PR 6-6 (Algo) (LO 6.1, 6.3) Williams Electric Corporation... Williams Electric Corporation has two support departments, Human Resources (HR) and Information Technology (IT). HR costs for the year total $304,000 and are allocated based on employee count. IT costs for the year total $424,000 and are allocated according to the number of hours that employees are logged onto the computer network. Use the data below to allocate support-department costs to Williams Electric Corporation's two production departments: Interior and Exterior. Support Departments HR: Number of employees IT: Network hours Costs to allocate Required: Human Resources 5 40,000 $ 304,000 Production Departments Information Technology Interior 20 35 Exterior 45 Total 105 12,000 $ 424,000 45,000 $ 0 15,000 $ 0 112,000 $ 728,000 Prepare a schedule that allocates support department costs using the direct method. Compute the total amount of support costs allocated to each operating department: Interior and Exterior. Question a. What is the total amount of support costs allocated to Interior? b. What is the total amount of support costs allocated to Exterior? Answer Total $ 0.00
PR 6-6 (Algo) (LO 6.1, 6.3) Williams Electric Corporation... Williams Electric Corporation has two support departments, Human Resources (HR) and Information Technology (IT). HR costs for the year total $304,000 and are allocated based on employee count. IT costs for the year total $424,000 and are allocated according to the number of hours that employees are logged onto the computer network. Use the data below to allocate support-department costs to Williams Electric Corporation's two production departments: Interior and Exterior. Support Departments HR: Number of employees IT: Network hours Costs to allocate Required: Human Resources 5 40,000 $ 304,000 Production Departments Information Technology Interior 20 35 Exterior 45 Total 105 12,000 $ 424,000 45,000 $ 0 15,000 $ 0 112,000 $ 728,000 Prepare a schedule that allocates support department costs using the direct method. Compute the total amount of support costs allocated to each operating department: Interior and Exterior. Question a. What is the total amount of support costs allocated to Interior? b. What is the total amount of support costs allocated to Exterior? Answer Total $ 0.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
mn.4
![PR 6-6 (Algo) (LO 6.1, 6.3) Williams Electric Corporation...
Williams Electric Corporation has two support departments, Human Resources (HR) and Information Technology (IT). HR costs for the
year total $304,000 and are allocated based on employee count. IT costs for the year total $424,000 and are allocated according to
the number of hours that employees are logged onto the computer network. Use the data below to allocate support-department costs
to Williams Electric Corporation's two production departments: Interior and Exterior.
Support Departments
HR: Number of
employees
IT: Network hours
Costs to allocate
Required:
Human Resources
5
40,000
$ 304,000
Production Departments
Information
Technology
Interior
Exterior
Total
20
35
45
105
12,000
$ 424,000
45,000
$ 0
15,000
$ 0
112,000
$ 728,000
Prepare a schedule that allocates support department costs using the direct method. Compute the total amount of support costs
allocated to each operating department: Interior and Exterior.
Question
a. What is the total amount of support costs allocated to Interior?
b. What is the total amount of support costs allocated to Exterior?
Answer
Total $
0.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1df83bb-7fec-49a0-9789-38420e065d59%2Fdafaa115-f1c2-4348-80b6-5041baa689d2%2Fpz5kz98_processed.png&w=3840&q=75)
Transcribed Image Text:PR 6-6 (Algo) (LO 6.1, 6.3) Williams Electric Corporation...
Williams Electric Corporation has two support departments, Human Resources (HR) and Information Technology (IT). HR costs for the
year total $304,000 and are allocated based on employee count. IT costs for the year total $424,000 and are allocated according to
the number of hours that employees are logged onto the computer network. Use the data below to allocate support-department costs
to Williams Electric Corporation's two production departments: Interior and Exterior.
Support Departments
HR: Number of
employees
IT: Network hours
Costs to allocate
Required:
Human Resources
5
40,000
$ 304,000
Production Departments
Information
Technology
Interior
Exterior
Total
20
35
45
105
12,000
$ 424,000
45,000
$ 0
15,000
$ 0
112,000
$ 728,000
Prepare a schedule that allocates support department costs using the direct method. Compute the total amount of support costs
allocated to each operating department: Interior and Exterior.
Question
a. What is the total amount of support costs allocated to Interior?
b. What is the total amount of support costs allocated to Exterior?
Answer
Total $
0.00
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