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:ITIT ticketsHR1,575Employees160Publishing2,52024Binding2,20540Department direct costs$ 156,000$ 248,850$ 433,000$ 397,500Required: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.From:Service department costsITHRTotalCost Allocation To:HRPublishingBinding$° $°$0$0

One technique for allocating costs that makes use of simultaneous equations is the reciprocal…

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: HR IT tickets Employees 0 1,575 16 0 Publishing 2,520 24 Binding 2,205 40 Department direct costs $ 156,000 $ 248,850 $ 433,000 $ 397,500 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. From: Service department costs IT HR Total Cost Allocation To: HR Publishing Binding $ 0 $ 0 $ 0 $ 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: HR IT tickets Employees 0 1,575 16 0 Publishing 2,520 24 Binding 2,205 40 Department direct costs $ 156,000 $ 248,850 $ 433,000 $ 397,500 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. From: Service department costs IT HR Total Cost Allocation To: HR Publishing Binding $ 0 $ 0 $ 0 $ 0

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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The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c. Click the icon to view the monthly data. a. Develop a sim Overhead Costs (Round the const Monthly Overhead Costs and Billable Hours Data Overhead Costs Billable Hours $385,000 2,000 $425,000 3,000 $445,000 4,000 $496,000 5,000 $560,000 6,000 $580,000 7,000 - clude the $ symbol in your answers.)
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 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 departments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.
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