The following is a partially completed departmental expense allocation spreadsheet for Metal Works. It reports the total amounts of direct and indirect expenses for its four departments. IT department expenses are allocated to the operating departments on the basis of computer terminals. HR department expenses are allocated based on number of employees. Compute the amount of HR department expenses to be allocated to Production. (Do not round your intermediate calculations.) IT HR Production Shipping Operating costs $42,000 $35,800 $128,000 $64,000 No. of terminals No. of employees a. $26,850 b. $14,320 c. $17,900 d. $23,867 e. $16,733 12 8 45 15

The following is a partially completed departmental expense allocation spreadsheet for Metal Works. It reports the total amounts of direct and indirect expenses for its four departments. IT department expenses are allocated to the operating departments on the basis of computer terminals. HR department expenses are allocated based on number of employees. Compute the amount of HR department expenses to be allocated to Production. (Do not round your intermediate calculations.) IT HR Production Shipping Operating costs $42,000 $35,800 $128,000 $64,000 No. of terminals No. of employees a. $26,850 b. $14,320 c. $17,900 d. $23,867 e. $16,733 12 8 45 15

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 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
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The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. Operating costs No. of purchase orders Sq. ft. of space Multiple Choice O $6,400. $9,900. $8,100. $9,000. $25,600. Purchasing Maintenance Fabrication Assembly $32,000 $18,000 $96,000 16 3,300 $62,000 4 2,700
Compute the amount of. Maintenance department
General accounting
I want to correct answer general accounting
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Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT HR Publishing Binding IT tickets 0 1,600 1,600 4,800 Employees 16 0 24 40 Department direct costs $ 155,000 $ 265,400 $ 430,000 $ 390,000 Question: Use the step method to allocate the service costs, using the following: The order of allocation starts with IT. The order of allocation starts with HR.
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