Munabhai Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month ofJune:Overhead costs incurredService provided to departmentsMaintenanceUtilitiesProducing-AProducing-BService DepartmentsMaintenance Utilities$ 405,000 $ 681,0001. The direct method2. The step method3. The reciprocal method10%2070100%ProducingDepartment ATotalsRequired:What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) thedirect method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Do not round intermediatecalculations. Round final answers to the nearest dollar.)ProducingDepartment B5%4055100%$$$Total ServiceDepartment Cost000

Lets understand the basics.Cost of service department can be allocated to production departments…

Solexx Corporation allocates its service department overhead costs to producing departments. This informatic June: Overhead costs incurred Service provided to departments Maintenance Utilities Producing-A Producing-B Totals Service Departments Maintenance Utilities $ 405,000 $ 681,000 10% 20 70 100% 5% 40 55 100%

Solexx Corporation allocates its service department overhead costs to producing departments. This informatic June: Overhead costs incurred Service provided to departments Maintenance Utilities Producing-A Producing-B Totals Service Departments Maintenance Utilities $ 405,000 $ 681,000 10% 20 70 100% 5% 40 55 100%

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 8P: Journalizing the distribution of service department costs to production departments Required: Using...

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The following information is departmental cost allocation with two service departments and two production departments. Department Cost Percentage Service Provided to S1 S2 P1 P2 Service 1 (S1) $ 32,000 0% 25% 30% 45% Service 2 (S2) 23,000 20 0 20 60 Production 1 (P1) 130,000 Production 2 (P2) 180,000 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? The following information relates to a joint production process for three products, with a total joint production cost of $165,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $ 181,500 320 2 99,000 960 3 49,500 1,920 $ 330,000 3,200 What percentage of joint cost is allocated to each of the three products using the sales value at split-off method? Do not give answer in image
REQUIRED: Determined the amount of factory overhead cost of service departments allocated to producing departments using: a. Direct Method b. Step Method c. Reciprocal Method
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