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 costsITHR0161,5000Publishing2,40024Binding2,10040$ 150,000$ 247,500$ 430,000$ 390,000Required:Use the step method to allocate the service costs, using the following:a. The order of allocation starts with IT.b. The order of allocation starts with HR.Complete this question by entering your answers in the tabs below.Required ARequired BUse 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.Cost Allocation To:From:ITHRService department costs$150,000 $247,500ITHRPublishingBinding

Allocation of Overhead: Indirect costs means the cost producing goods or services. Overhead includes…

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 HR 0 16 1,500 Publishing 2,400 Binding 2,100 0 24 40 $ 150,000 Required: $ 247,500 $430,000 $390,000 Use the step method to allocate the service costs, using the following: a. The order of allocation starts with IT. b. The order of allocation starts with HR.

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 HR 0 16 1,500 Publishing 2,400 Binding 2,100 0 24 40 $ 150,000 Required: $ 247,500 $430,000 $390,000 Use the step method to allocate the service costs, using the following: a. The order of allocation starts with IT. b. The order of allocation starts with HR.

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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