Tom & Jerry Publishers (TJP) is a publisher for books for children. It has four departments viz. HR, Finance, Printing and Packaging. TJP treats first two as support departments and other two as production departments. The company uses Asset Value as a driver for finance department and employee Head Count as a driver for HR department allocation. Following is the data available with regards to April 20X1. Specifics HR Finance Printing Packaging Asset Value $150,000 $200,000 $1,400,000 $400,000 Head Count 8 15 40 20 Department Costs $250,000 $100,000 $1,500,000 $200,000 Calculate the final costs of all the four departments for the month of April after allocation to Printing and packaging using: (scoring 5+10+10=25) Direct method HR Finance Printing Packaging Department costs 250,000 100,000 1,500,000 200,000 Allocation of HR department costs (40:20) -250,000 Allocation of Financial department costs 100,000 0 0 Sequential method assuming that HR is primary support department Reciprocal method

Tom & Jerry Publishers (TJP) is a publisher for books for children. It has four departments viz. HR, Finance, Printing and Packaging. TJP treats first two as support departments and other two as production departments. The company uses Asset Value as a driver for finance department and employee Head Count as a driver for HR department allocation. Following is the data available with regards to April 20X1. Specifics HR Finance Printing Packaging Asset Value $150,000 $200,000 $1,400,000 $400,000 Head Count 8 15 40 20 Department Costs $250,000 $100,000 $1,500,000 $200,000 Calculate the final costs of all the four departments for the month of April after allocation to Printing and packaging using: (scoring 5+10+10=25) Direct method HR Finance Printing Packaging Department costs 250,000 100,000 1,500,000 200,000 Allocation of HR department costs (40:20) -250,000 Allocation of Financial department costs 100,000 0 0 Sequential method assuming that HR is primary support department Reciprocal method

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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Tom & Jerry Publishers (TJP) is a publisher for books for children. It has four departments viz. HR, Finance , Printing and Packaging. TJP treats first two as support departments and other two as production departments. The company uses Asset Value as a driver for finance department and employee Head Count as a driver for HR department allocation. Following is the data available with regards to April 20X1. Specifics HR Finance Printing Packaging Asset Value $150,000 $250,000 $1,400,000 $350,000 Head Count 7 10 35 15 Department Costs $150,000 $200,000 $1,200,000 $200,000 Calculate the final costs of all the four departments for the month of April after allocation to Printing and packaging using: a. Direct method b. Sequential method assuming that HR is primary support department c. Reciprocal method Please need true help with all work so that…
Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as total sales for the two operating departments for the year 2019. Direct Expenses Square Feet 500 Sales Department Advertising Administrative $ 15,000 27,000 103,000 13,000 700 4,100 4,700 $124,000 186,000 Shoes Clothing The advertising department developed and distributed 190 advertisements during the year. Of these, 38 promoted shoes and 152 promoted clothing. Utilities expense of $74,000 is an indirect expense to all departments. Complete a departmental expense allocation spreadsheet for Marathon Running Shop. The spreadsheet should assign (1) direct expenses to each of the four departments, (2) the $74,000 of utilities expense to the four departments on the basis of floor space occupied, (3) the advertising department's expenses…
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. Lead LLC has three production departments and four service departments. The expenses for these departments are as follows: Production Departments Amount (RO) B121 5,000,000 C121 3,000,000 D121 2,000,000 Total Amount 10,000,000 Service Departments Amount (RO) Stores 200,000 Time keeping & accounts 100,000 Power 300,000 Canteen 400,000 Total Amount 1,000,000 The following information is also available in respect of the production departments: Particulars Department A Department B Department C Horse power of machine 200 100 300 Number of workers 10 8 7 Value of stores requisition (RO) 100,000 75,000 25,000 Apportion the cost of service department over the production departments.
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 tickets Employees Department direct costs From: Service department costs IT HR Total IT $ 0 16 $ 152,000 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. HR 1,525 0 $ 247,950 152,000 Answer is not complete. Cost Allocation To: IT HR 152,000 $ 247,950 Publishing 2,440 24 $ 431,000 $ 247,950 Publishing $ Binding 2,135 40 $ 392,500 0 Binding 0
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 IT tickets Employees 0 16 1,500 0 Publishing 2,400 24 Binding 2,100 40 Department direct costs $ 150,000 $ 247,500 $ 430,000 $ 390,000 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Answer is not complete. Cost Allocation To: From: IT HR Publishing Binding Service department costs $ 150,000 $ 247,500 $ 0 $ IT 2,400 x 0 2,100 × HR 1,500 x Total $ 150,000 $ 247,500 $…
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 1,500 2,400 2,100 Employees 16 0 24 40 Department direct costs $150,000 $247,500 $430,000 $390,000 Required: Use the direct method to allocate these service department costs to the operating departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round "Publishing" and "Binding" answers to 2 decimal places. IT HR Publishing Binding Service Department Costs IT Allocation HR Allocation Total Costs Allocated $ $ $ $
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 1,500 2,400 2,100 Employees 16 0 24 40 Department direct costs $ 150,000 $ 247,500 $ 430,000 $ 390,000 Required: Use the step method to allocate the service costs, using the following:The order of allocation starts with HR.Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Cost Allocation To: Cost Allocation To: Cost Allocation To: Cost Allocation To: From: HR IT Publishing Binding Service department costs HR IT Total costs $ $ $ $
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 1,500 2,400 2,100 Employees 16 0 24 40 Department direct costs $ 150,000 $ 247,500 $ 430,000 $ 390,000 Required: Use the step method to allocate the service costs, using the following:The order of allocation starts with IT.Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Costs Allocated To: Costs Allocated To: Costs Allocated To: Costs Allocated To: From: IT HR Pubishing Binding Service department costs IT HR Total Costs $ $ $ $