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$ITIT020$ 156,800Required: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.39,20039,2000xHR1,5850$ 249,030Answer is not complete.$Cost Allocation To:HRPublishing2,53630$ 433,40000X0Publishing$0x74,709 x74,709Binding2,21950$ 398,500$Binding0 x124,515124,515

The costs can be allocated among the departments using various methods. The different methods for…

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 20 $ 156,800 HR 1,585 0 $ 249,030 Publishing 2,536 20 30 $ 433,400 Binding Answer is not complete. 2,219 50 $ 398,500 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.

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 20 $ 156,800 HR 1,585 0 $ 249,030 Publishing 2,536 20 30 $ 433,400 Binding Answer is not complete. 2,219 50 $ 398,500 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.

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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