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
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter25: Segment Income Statement (dept)
Section: Chapter Questions
Problem 6R
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