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 costsService department costsIT allocationHR allocationTotal costs allocated$ITIT025$ 159,000Required: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.HR1,1000$ 247,5000 $HRPublishing1,10033$ 430,0000 $PublishingBinding3,30049$ 390,0000.00 $Binding0.00

The indirect costs are the costs that are not related directly to the production. The costs can be…

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 IT 0 25 $ 159,000 HR 1,100 0 $ 247,500 Publishing 1,100 33 $ 430,000 Binding 3,300 49 $ 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.

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 IT 0 25 $ 159,000 HR 1,100 0 $ 247,500 Publishing 1,100 33 $ 430,000 Binding 3,300 49 $ 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.

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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