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! Required information Use the following information for the Exercises below. Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows: Provider of Service User of Service Library Computing Services Liberal Arts Sciences Library 0 0 60% 40% Computing Services 20% Ө 30% 50% The budgeted costs in the two service departments for the year are as follows: Library Computing Services $ 1,030,000 490,000 EX 17-16 (Algo) Step-Down Method of Service Department Cost Allocation; College (LO 17-1) Required: 1. Use the step-down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences departments. Note: Do not round intermediate calculations. Answer is complete but not entirely correct. Allocation of Computing Service costs Allocation of Library costs Total costs allocated to each department Liberal Arts Sciences $ 147,000 ( $ 245,000 618,000 × 412,000 $ 765,000 $ 657,000

! Required information Use the following information for the Exercises below. Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows: Provider of Service User of Service Library Computing Services Liberal Arts Sciences Library 0 0 60% 40% Computing Services 20% Ө 30% 50% The budgeted costs in the two service departments for the year are as follows: Library Computing Services $ 1,030,000 490,000 EX 17-16 (Algo) Step-Down Method of Service Department Cost Allocation; College (LO 17-1) Required: 1. Use the step-down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences departments. Note: Do not round intermediate calculations. Answer is complete but not entirely correct. Allocation of Computing Service costs Allocation of Library costs Total costs allocated to each department Liberal Arts Sciences $ 147,000 ( $ 245,000 618,000 × 412,000 $ 765,000 $ 657,000

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 9E
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! Required information Use the following information for the Exercises below. Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows: Provider of Service User of Service Library Computing Services Liberal Arts Sciences Library 0 0 60% 40% Computing Services 20% Ө 30% 50% The budgeted costs in the two service departments for the year are as follows: Library Computing Services $ 1,030,000 490,000 EX 17-16 (Algo) Step-Down Method of Service Department Cost Allocation; College (LO 17-1) Required: 1. Use the step-down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences departments. Note: Do not round intermediate calculations. Answer is complete but not entirely correct. Allocation of Computing Service costs Allocation of Library costs Total costs allocated to each department Liberal Arts Sciences $ 147,000 ( $ 245,000 618,000 × 412,000 $ 765,000 $ 657,000
Transcribed Image Text:! Required information Use the following information for the Exercises below. Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows: Provider of Service User of Service Library Computing Services Liberal Arts Sciences Library 0 0 60% 40% Computing Services 20% Ө 30% 50% The budgeted costs in the two service departments for the year are as follows: Library Computing Services $ 1,030,000 490,000 EX 17-16 (Algo) Step-Down Method of Service Department Cost Allocation; College (LO 17-1) Required: 1. Use the step-down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences departments. Note: Do not round intermediate calculations. Answer is complete but not entirely correct. Allocation of Computing Service costs Allocation of Library costs Total costs allocated to each department Liberal Arts Sciences $ 147,000 ( $ 245,000 618,000 × 412,000 $ 765,000 $ 657,000
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