Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Overhead costs incurred Service provided to departments Maintenance Utilities. Producing A Producing-B Totals 1. 2 3. The direct method The step method The reciprocal method i Service Departments Producing Department A $ $ Haintenance $324,000 10% 20 70 100% Required: What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Do not round intermediate calculations. Round final answers to the nearest dollar.) Utilities 357.474 S 350 274 Answer is not complete. $ 678,000 Producing Department B 5% 40 55 100% 644,526 S Total Service Department Cost 1,002,000 350,274 0
Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Overhead costs incurred Service provided to departments Maintenance Utilities. Producing A Producing-B Totals 1. 2 3. The direct method The step method The reciprocal method i Service Departments Producing Department A $ $ Haintenance $324,000 10% 20 70 100% Required: What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Do not round intermediate calculations. Round final answers to the nearest dollar.) Utilities 357.474 S 350 274 Answer is not complete. $ 678,000 Producing Department B 5% 40 55 100% 644,526 S Total Service Department Cost 1,002,000 350,274 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 7-38 (Algo) Departmental Cost Allocation [LO 7-3]
Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of
June:
Overhead costs incurred
Service provided to departments
Maintenance
Utilities
Producing-A
Producing-B
Totals
1
2
3.
The direct method
The step method
The reciprocal method i
Producing
Department
A
$
$
Service Departments
Haintenance
$ 324,000
Required:
What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the
direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Do not round intermediate
calculations. Round final answers to the nearest dollar.)
357.474
350 274 x
10%
20
70
100%
Answer is not complete.
Utilities
$ 678,000
S
Producing
Department
B
644,526
5%
40
55
100%
$
$
Total Service.
Department
Cost
1,002,000
350,274
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac92dbf6-898b-4a56-aeb2-f055afd4d544%2F60ddce81-f5be-4bfa-b290-df7c23c49963%2F74ekx3g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 7-38 (Algo) Departmental Cost Allocation [LO 7-3]
Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of
June:
Overhead costs incurred
Service provided to departments
Maintenance
Utilities
Producing-A
Producing-B
Totals
1
2
3.
The direct method
The step method
The reciprocal method i
Producing
Department
A
$
$
Service Departments
Haintenance
$ 324,000
Required:
What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the
direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Do not round intermediate
calculations. Round final answers to the nearest dollar.)
357.474
350 274 x
10%
20
70
100%
Answer is not complete.
Utilities
$ 678,000
S
Producing
Department
B
644,526
5%
40
55
100%
$
$
Total Service.
Department
Cost
1,002,000
350,274
0
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