Service Department Graphics Production Accounting Personnel Cost $200,000 500,000 400,000 Direct revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follow: Activity Base for Allocation number of copies made number of invoices processed number of employees Micro $700,000 $50,000 20,000 700 130 Macro $850,000 $70,000 30,000 800 145 What is the service department charge rate for Graphics Production? Oa. $6.66 Ob. $2 Oc. $10 Od. $0.50 Super $650,000 $100,000 50,000 500 125

Service Department Graphics Production Accounting Personnel Cost $200,000 500,000 400,000 Direct revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follow: Activity Base for Allocation number of copies made number of invoices processed number of employees Micro $700,000 $50,000 20,000 700 130 Macro $850,000 $70,000 30,000 800 145 What is the service department charge rate for Graphics Production? Oa. $6.66 Ob. $2 Oc. $10 Od. $0.50 Super $650,000 $100,000 50,000 500 125

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 5SEA: COMPUTING OPERATING INCOME The sales, cost of goods sold, and total operating expenses of...

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Comprehensive support department allocations Management at C. Pier Press has decided to allocate costs of the paper’s two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employed Administration $390,750 5 $193,550 Human resources 246,350 4 145,850 Advertising 478,900 6 381,200 Circulation 676,300 13 935,150 Totals $1,792,300 28 $1,655,750 a. Using the direct method, allocate the support department costs to the revenue-generating departments.Note: Round percentages in your calculation to the nearest whole percent (for example, round 34.5% to 35%).Note: Round your final answer to the nearest whole dollar.Total…
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Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $270,000 to $290,000?
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first?
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the amount of service department cost allocated to P1 and P2 using the direct method?