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 0 Publishing 1,500 24 Binding 4,500 40 $ 152,000 $ 263,000 $ 430,000 $ 390,000 Required: 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 A Required B Use 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. From: Service department costs IT HR Total costs Cost Allocation To: IT HR Publishing Binding $ 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: IT tickets Employees Department direct costs IT HR 0 16 1,500 0 Publishing 1,500 24 Binding 4,500 40 $ 152,000 $ 263,000 $ 430,000 $ 390,000 Required: 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 A Required B Use 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. From: Service department costs IT HR Total costs Cost Allocation To: IT HR Publishing Binding $ 0 $ 0 $ 0 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
0
Publishing
1,500
24
Binding
4,500
40
$ 152,000
$ 263,000
$ 430,000
$ 390,000
Required:
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 A
Required B
Use 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.
From:
Service department costs
IT
HR
Total costs
Cost Allocation To:
IT
HR
Publishing
Binding
$
0 $
0 $
0 $
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