Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating epartments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT equest) 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 6 22 $ 153,200 HR 1,540 e $ 248,220 Publishing 2,464 33 $ 431,600 Binding 2,156 55 $ 394,000 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.

Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating epartments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT equest) 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 6 22 $ 153,200 HR 1,540 e $ 248,220 Publishing 2,464 33 $ 431,600 Binding 2,156 55 $ 394,000 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.

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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