Do not give answer in image Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operatingdepartments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each ITrequest) 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 ticketsEmployeesDepartment direct costsFrom:Service department costsITHRTotal$$IT024$ 151,600Required:Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two servicedepartments.)Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.IT151,600 $HR1,5200$ 247,860151,600 $Publishing2,43236$ 430,800Cost Allocation To:HRPublishing247,860 $247,860 $00$Binding2,12860$ 392,000$Binding00

The cost is allocated from service department to operating departments on the basis of different…

Voodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating lepartments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT equest) 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 IT 0 24 $ 151,600 HR 1,520 0 $ 247,860 Publishing 2,432 36 $ 430,800 Binding 2,128 60 $ 392,000 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service epartments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.

Voodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating lepartments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT equest) 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 IT 0 24 $ 151,600 HR 1,520 0 $ 247,860 Publishing 2,432 36 $ 430,800 Binding 2,128 60 $ 392,000 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service epartments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.

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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