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Skysong's Market United (SMU) is an umbrella organization for all individuals who are go-getters in home-grown produce, homemade jams/jellies, artisan breads, and other hand-crafted items to be sold on local street corners. It represents a proud group of folks who are trying to keep the small producer and the health-conscious consumer top-of-mind when it comes to filling the refrigerator and pantry.

Skysong's Market United (SMU) is an umbrella organization for all individuals who are go-getters in home-grown produce, homemade jams/jellies, artisan breads, and other hand-crafted items to be sold on local street corners. It represents a proud group of folks who are trying to keep the small producer and the health-conscious consumer top-of-mind when it comes to filling the refrigerator and pantry.

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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Skysong's Market United (SMU) is an umbrella organization for all individuals who are go-getters in home-grown produce, homemade jams/jellies, artisan breads, and other hand-crafted items to be sold on local street corners. It represents a proud group of folks who are trying to keep the small producer and the health-conscious consumer top-of-mind when it comes to filling the refrigerator and pantry. As a large organization that provides a variety of services for its regional member clubs, SMU continually strives to better understand its own profitability. SMU has four key support services to assist its members: Member Services, Social Media, Resource Deployment, and Administrative Services. These four support departments exist for the benefit of the three operating segments, which are organized geographically: East, Central, and West. While the support services primarily assist the operating segments, they also cross over and assist each other. The services offered by the support departments, along with the original cost of each support department, are as follows. Original cost Member Services hours Social Media hours Resource Deployment hours Admin. Services hours Total $ East Member Social Services Media Support Departments $18,200 $27,000 100 100 200 $ 300 Admin. Resource Deployment Services $39,000 I I Central 200 Operating Segments $54,600 I $ East Not available Operating Segments 600 500 400 500 West Central Not available 300 500 500 400 Using the reciprocal method in Excel, allocate the support costs to the operating segments, showing the total support costs that that each operating segment will be accountable for as your final result. (Round answers to 2 decimal places, e.g. 15.25.) West Not available 500 500 600 400
Transcribed Image Text:Skysong's Market United (SMU) is an umbrella organization for all individuals who are go-getters in home-grown produce, homemade jams/jellies, artisan breads, and other hand-crafted items to be sold on local street corners. It represents a proud group of folks who are trying to keep the small producer and the health-conscious consumer top-of-mind when it comes to filling the refrigerator and pantry. As a large organization that provides a variety of services for its regional member clubs, SMU continually strives to better understand its own profitability. SMU has four key support services to assist its members: Member Services, Social Media, Resource Deployment, and Administrative Services. These four support departments exist for the benefit of the three operating segments, which are organized geographically: East, Central, and West. While the support services primarily assist the operating segments, they also cross over and assist each other. The services offered by the support departments, along with the original cost of each support department, are as follows. Original cost Member Services hours Social Media hours Resource Deployment hours Admin. Services hours Total $ East Member Social Services Media Support Departments $18,200 $27,000 100 100 200 $ 300 Admin. Resource Deployment Services $39,000 I I Central 200 Operating Segments $54,600 I $ East Not available Operating Segments 600 500 400 500 West Central Not available 300 500 500 400 Using the reciprocal method in Excel, allocate the support costs to the operating segments, showing the total support costs that that each operating segment will be accountable for as your final result. (Round answers to 2 decimal places, e.g. 15.25.) West Not available 500 500 600 400
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