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Step method Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The company uses the step method to allocate support department costs to operating departments. In October, human resources incurred $432,000 of costs, administration incurred $669,600, and maintenance incurred $204,000. Proportions of services provided to other departments for October follow. Human Resources Administration Maintenance Human resources Administration Maintenance Assembly Finishing To Administration $ To Maintenance To Assembly To Finishing Total $ 432,000 a. Assume that the departments are listed in a benefits-provided ranking. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. To Administration $ To Maintenance To Assembly To Finishing Total 10% 15 40 35 1. What amount of cost should be assigned from human resources to each of the other departments? 43,200 ✓ 64,800 172,800 ✓ 151,200 ✓ $ 10% 712,800 x 79,200 ✓ 10 50 30 396,000 ✓ 237,600 ✓ 0 x 5% 15 2. What amount of cost should be assigned from administration to each of the other departments? 45 35

Step method Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The company uses the step method to allocate support department costs to operating departments. In October, human resources incurred $432,000 of costs, administration incurred $669,600, and maintenance incurred $204,000. Proportions of services provided to other departments for October follow. Human Resources Administration Maintenance Human resources Administration Maintenance Assembly Finishing To Administration $ To Maintenance To Assembly To Finishing Total $ 432,000 a. Assume that the departments are listed in a benefits-provided ranking. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. To Administration $ To Maintenance To Assembly To Finishing Total 10% 15 40 35 1. What amount of cost should be assigned from human resources to each of the other departments? 43,200 ✓ 64,800 172,800 ✓ 151,200 ✓ $ 10% 712,800 x 79,200 ✓ 10 50 30 396,000 ✓ 237,600 ✓ 0 x 5% 15 2. What amount of cost should be assigned from administration to each of the other departments? 45 35

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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3. What amount of cost should be assigned from maintenance to each of the other departments? To Administration $ 0 ✓ To Maintenance $ 348,000 x To Assembly 56.25 X To Finishing 43.75 X Total 0x Check
Transcribed Image Text:3. What amount of cost should be assigned from maintenance to each of the other departments? To Administration $ 0 ✓ To Maintenance $ 348,000 x To Assembly 56.25 X To Finishing 43.75 X Total 0x Check
Step method Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The company uses the step method to allocate support department costs to operating departments. In October, human resources incurred $432,000 of costs, administration incurred $669,600, and maintenance incurred $204,000. Proportions of services provided to other departments for October follow. Human Resources Administration Maintenance Human resources Administration Maintenance Assembly Finishing To Administration $ To Maintenance To Assembly To Finishing Total a w 10% 15 40 35 a. Assume that the departments are listed in a benefits-provided ranking. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. 1. What amount of cost should be assigned from human resources to each of the other departments? 43,200 64,800 ✓ 172,800 ✓ 151,200 432,000 To Administration $ 712,800 x To Maintenance 79,200 To Assembly 396,000 To Finishing 237,600 ✓ Total 0 x $ 10% 10 50 30 5% 15 45 35 $ 2. What amount of cost should be assigned from administration to each of the other departments?
Transcribed Image Text:Step method Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The company uses the step method to allocate support department costs to operating departments. In October, human resources incurred $432,000 of costs, administration incurred $669,600, and maintenance incurred $204,000. Proportions of services provided to other departments for October follow. Human Resources Administration Maintenance Human resources Administration Maintenance Assembly Finishing To Administration $ To Maintenance To Assembly To Finishing Total a w 10% 15 40 35 a. Assume that the departments are listed in a benefits-provided ranking. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. 1. What amount of cost should be assigned from human resources to each of the other departments? 43,200 64,800 ✓ 172,800 ✓ 151,200 432,000 To Administration $ 712,800 x To Maintenance 79,200 To Assembly 396,000 To Finishing 237,600 ✓ Total 0 x $ 10% 10 50 30 5% 15 45 35 $ 2. What amount of cost should be assigned from administration to each of the other departments?
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