Spero Ticket Co. has two operating departments (Sports and Concerts) and two service centers (Administration and Custodial). Data for June are as follows: Costs Services provided to: Administration Custodial Sports Concerts Administration $42,000 10% 50% 40% 100% Custodial $18,000 20% 30% 50% 100% Allocate the service center costs to the operating departments using the step method. Begin with Administration. To Sports: $ To Concerts: $

Spero Ticket Co. has two operating departments (Sports and Concerts) and two service centers (Administration and Custodial). Data for June are as follows: Costs Services provided to: Administration Custodial Sports Concerts Administration $42,000 10% 50% 40% 100% Custodial $18,000 20% 30% 50% 100% Allocate the service center costs to the operating departments using the step method. Begin with Administration. To Sports: $ To Concerts: $

Name: Spero Ticket Co. has two operating departments (Sports and Concerts)
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Spero Ticket Co. has two operating departments (Sports and Concerts) and two servicecenters (Administration and Custodial). Data for June are as follows:CostsServices provided to:AdministrationCustodialSportsConcertsAdministration$42,00010%50%40%100

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Required information The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Costs Number of employees Square feet of space occupied Hours of press time Departmental costs before allocations Allocations: Service Departments Administration Janitorial Maintenance $ 144,200 $ 108,150 $ 49,440 140 20,000 Administration costs Janitorial costs Maintenance costs Total costs after allocations 60 15,000 Administration $ The company allocates service department costs by the step-down method in the following order: Administration (number of employees), Janitorial (space occupied), and Maintenance (hours of press time). Service Departments Janitorial $ 144,200 $ 108,150 $ 35 10,000 Required: Using the step-down method, allocate the service department costs to the operating departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line…
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repairs HR IT Repairs HR 10% 0% HR allocation IT allocation Total costs allocated Service department costs Repairs allocation 0% 10% IT 0% 20% M1 The direct costs of the service departments in the previous period were $40,000 for Repairs, $59,600 for HR, and $90,000 for IT. Required: Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Repairs 40% 35% 20% M2 60% 35% 70% HR IT M1 M2
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Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR IT Accounting 0% HR West East 20% 40% 40% 0% 10% 0% 40% 60% 10% 60% 20% The direct costs of the service departments in the previous period were $86,750 for IT, $99,000 for Accounting, and $112,500 for HR. Required: Use the reciprocal method to allocate the service department costs to the production departments. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Allocation IT Accounting HR West East Service department costs $ 86,750 $ 99,000 $ 112,500 $ 0 $ 0 IT allocation Accounting allocation HR allocation Total costs allocated $ 86,750 $ 99,000 $ 112,500 $ 0 $ 0
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