The costs allocated to each cost center are as follows: Q3: X Y Total of Primary Distribution 40.000 45.000 55.000 8.000 7.160 Cost Centers/Costs Production Department A Service Department Total Cost 155.500 There is a reciprocal relationship between cost centers. X Service Cost center based on the number of workers, Y Service Cost center will be apportioned on the base of m2. Number of Workers m2 A 152 4.500 B 114 1.350 76 2.700 20 450 Y 38 300 Total 400 9.300 a) Calculate the benefits received from each service department. b) Calculate the X Service Center's total cost subject to re-distribution. c) Calculate the Y Service Center's total cost subject to re-distribution. d) Re-allocate the cost of service cost centers
The costs allocated to each cost center are as follows: Q3: X Y Total of Primary Distribution 40.000 45.000 55.000 8.000 7.160 Cost Centers/Costs Production Department A Service Department Total Cost 155.500 There is a reciprocal relationship between cost centers. X Service Cost center based on the number of workers, Y Service Cost center will be apportioned on the base of m2. Number of Workers m2 A 152 4.500 B 114 1.350 76 2.700 20 450 Y 38 300 Total 400 9.300 a) Calculate the benefits received from each service department. b) Calculate the X Service Center's total cost subject to re-distribution. c) Calculate the Y Service Center's total cost subject to re-distribution. d) Re-allocate the cost of service cost centers
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 7P: Distribution of service department costs to production departments using the sequential distribution...
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![The costs allocated to each cost center are as follows:
Q3:
Cost Centers/Costs
Production Department
Service Department
Total Cost
Y
A
B
Total of Primary Distribution
There is a reciprocal relationship between cost centers. X Service Cost center based
on the number of workers, Y Service Cost center will be apportioned on the base of
40.000 45.000 55.000 8.000 7.160
155.500
m2.
A
B
X
Y
Total
Number of Workers
m2
152
4.500
114
1.350
76
2.700
20
450
38
300
400
9.300
a) Calculate the benefits received from each service department.
b) Calculate the X Service Center's total cost subject to re-distribution.
c) Calculate the Y Service Center's total cost subject to re-distribution.
d) Re-allocate the cost of service cost centers](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdac8bf88-3dbd-412d-884c-bcf4403e8ada%2Fa351d60a-2088-4803-ae91-ad6eadee4cac%2Fvzrr8ll_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The costs allocated to each cost center are as follows:
Q3:
Cost Centers/Costs
Production Department
Service Department
Total Cost
Y
A
B
Total of Primary Distribution
There is a reciprocal relationship between cost centers. X Service Cost center based
on the number of workers, Y Service Cost center will be apportioned on the base of
40.000 45.000 55.000 8.000 7.160
155.500
m2.
A
B
X
Y
Total
Number of Workers
m2
152
4.500
114
1.350
76
2.700
20
450
38
300
400
9.300
a) Calculate the benefits received from each service department.
b) Calculate the X Service Center's total cost subject to re-distribution.
c) Calculate the Y Service Center's total cost subject to re-distribution.
d) Re-allocate the cost of service cost centers
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