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 I can understand the problem thanks
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 I can understand the problem thanks
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