Slewah Corporation has two main production departments, Cameras and Batteries. The company also has two service departments, the Human Resources department and the Information Technology department. The budgeted costs in the two service departments, Human Resources and Information Technology, are £550,000 and £350,000 respectively. Slewah Corporation allocates the costs of the Human Resources department first when using the step-down method. The usage of these two service departments' output for the year is as follows: a. User of Service Human Resources Information Technology d. Cameras Batteries £276,000 b. £0 C. £220,000 Provider of Service £250,000 Human Resources 20% 40% 40% Information Technology If Slewah Corporation uses the step-down method to allocate the budgeted costs of the Information Technology department, what would be the budgeted cost allocated to the Cameras department? Round the answer to the nearest £. 50% 1 30% 20%

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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Aa 60.

Slewah Corporation has two main production
departments, Cameras and Batteries. The company also
has two service departments, the Human Resources
department and the Information Technology department.
The budgeted costs in the two service departments,
Human Resources and Information Technology, are
£550,000 and £350,000 respectively. Slewah Corporation
allocates the costs of the Human Resources department
first when using the step-down method. The usage of
these two service departments' output for the year is as
follows:
a.
User of Service
Human
Resources
C.
Information
Technology
Cameras
d.
Batteries
£276,000
b.
£0
£220,000
Provider of
Service
£250,000
Human
Resources
20%
40%
If Slewah Corporation uses the step-down method to
allocate the budgeted costs of the Information
Technology department, what would be the budgeted
cost allocated to the Cameras department? Round the
answer to the nearest £.
40%
Information
Technology
50%
1
30%
20%
Transcribed Image Text:Slewah Corporation has two main production departments, Cameras and Batteries. The company also has two service departments, the Human Resources department and the Information Technology department. The budgeted costs in the two service departments, Human Resources and Information Technology, are £550,000 and £350,000 respectively. Slewah Corporation allocates the costs of the Human Resources department first when using the step-down method. The usage of these two service departments' output for the year is as follows: a. User of Service Human Resources C. Information Technology Cameras d. Batteries £276,000 b. £0 £220,000 Provider of Service £250,000 Human Resources 20% 40% If Slewah Corporation uses the step-down method to allocate the budgeted costs of the Information Technology department, what would be the budgeted cost allocated to the Cameras department? Round the answer to the nearest £. 40% Information Technology 50% 1 30% 20%
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