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Requirement 1. Allocate the support departments' costs to the operating departments using the direct method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances. Abbreviations used: HR = Human resources; Info. = Information.) Support Departments Operating Departments HR Info. Systems Consumer - X Corporate | Total O Data Tabler Costs incurred 80000|| 260000 950000|| 465000 1755000 Allocation of HR costs -80000 33000 27000 Allocation of Info. System costs -260000 Support Departments Information Operating Departments 1755000 Corporate Consumer Sales Human Total budgeted costs of operating departments Resources Systems Sales Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human resources department O Requirements - X 80,000 $ 260,000 $ 950,000 $ 465,000 Budgeted number of employees Support work supplied by information systems department 20 44 36 1. Allocate the support departments' costs to the operating departments using the direct method. 2. Rank the support departments based on the percentage of their services provided to other support departments. Use this ranking to allocate the support departments' costs to the operating departments based on the step-down method. Budgeted processing time (in minutes) 400 2,500 2,100 3. How could you have ranked the support departments differently? Print Done

Requirement 1. Allocate the support departments' costs to the operating departments using the direct method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances. Abbreviations used: HR = Human resources; Info. = Information.) Support Departments Operating Departments HR Info. Systems Consumer - X Corporate | Total O Data Tabler Costs incurred 80000|| 260000 950000|| 465000 1755000 Allocation of HR costs -80000 33000 27000 Allocation of Info. System costs -260000 Support Departments Information Operating Departments 1755000 Corporate Consumer Sales Human Total budgeted costs of operating departments Resources Systems Sales Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human resources department O Requirements - X 80,000 $ 260,000 $ 950,000 $ 465,000 Budgeted number of employees Support work supplied by information systems department 20 44 36 1. Allocate the support departments' costs to the operating departments using the direct method. 2. Rank the support departments based on the percentage of their services provided to other support departments. Use this ranking to allocate the support departments' costs to the operating departments based on the step-down method. Budgeted processing time (in minutes) 400 2,500 2,100 3. How could you have ranked the support departments differently? Print Done

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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|- books, an online book retailer, has two operating departments-corporate sales and consumer sales-and two support departments-human resources and information systems. Each sales department conducts merchandising and marketing operations independently. I- books uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September 2017: E (Click the icon to view the data.) Read the requirements. Requirement 1. Allocate the support departments' costs to the operating departments using the direct method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances. Abbreviations used: HR = Human resources; Info. = Information.) Support Departments Operating Departments HR Info. Systems Corporate Consumer Total Data Table Costs incurred 80000 260000 950000 465000 1755000 Allocation of HR costs -80000 33000 27000 -260000 Allocation of Info. System costs Support Departments Operating Departments 1755000 Human Information Corporate Sales Consumer Total budgeted costs of operating departments Resources Systems Sales Budgeted costs incurred before any interdepartment cost allocations Requirements $ 80,000 $ 260,000 $ 950,000 $ 465,000 Support work supplied by human resources department Budgeted number of employees 20 44 36 1. Allocate the support departments' costs to the operating departments using the direct method. Support work supplied by information systems department 2. Rank the support departments based on the percentage of their services provided to other support departments. Use this ranking to allocate the support departments' costs to the operating departments based on the step-down method. Budgeted processing time (in minutes) 400 2,500 2,100 3. How could you have ranked the support departments differently? Print Done
Transcribed Image Text:|- books, an online book retailer, has two operating departments-corporate sales and consumer sales-and two support departments-human resources and information systems. Each sales department conducts merchandising and marketing operations independently. I- books uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September 2017: E (Click the icon to view the data.) Read the requirements. Requirement 1. Allocate the support departments' costs to the operating departments using the direct method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances. Abbreviations used: HR = Human resources; Info. = Information.) Support Departments Operating Departments HR Info. Systems Corporate Consumer Total Data Table Costs incurred 80000 260000 950000 465000 1755000 Allocation of HR costs -80000 33000 27000 -260000 Allocation of Info. System costs Support Departments Operating Departments 1755000 Human Information Corporate Sales Consumer Total budgeted costs of operating departments Resources Systems Sales Budgeted costs incurred before any interdepartment cost allocations Requirements $ 80,000 $ 260,000 $ 950,000 $ 465,000 Support work supplied by human resources department Budgeted number of employees 20 44 36 1. Allocate the support departments' costs to the operating departments using the direct method. Support work supplied by information systems department 2. Rank the support departments based on the percentage of their services provided to other support departments. Use this ranking to allocate the support departments' costs to the operating departments based on the step-down method. Budgeted processing time (in minutes) 400 2,500 2,100 3. How could you have ranked the support departments differently? Print Done
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