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 IT tickets Employees Department direct costs Service department costs IT allocation HR allocation Total costs allocated e $ 27 $ 151,000 IT Required: Use the direct method to allocate these service department costs to the operating departments. HR Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round "Publishing" and "Binding" answers to 2 decimal places. $ 1,400 0 $ 247,500 HR Publishing 1,400 35 $430,000 of Publishing 0 $ Binding 4,200 51 $ 390,000 0.00 $ Binding 0.00

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 IT tickets Employees Department direct costs Service department costs IT allocation HR allocation Total costs allocated e $ 27 $ 151,000 IT Required: Use the direct method to allocate these service department costs to the operating departments. HR Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round "Publishing" and "Binding" answers to 2 decimal places. $ 1,400 0 $ 247,500 HR Publishing 1,400 35 $430,000 of Publishing 0 $ Binding 4,200 51 $ 390,000 0.00 $ Binding 0.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Required information [The following information applies to the questions displayed below.] Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Expected Activity Overhead Expected Activity 6,500 DLHS 2,400 orders 700 receipts 1,400 relays 41,000 MHs Activity Cost Pool Labor-related Purchase orders Measure Cost $ 58,500 $ 12,000 $ 11, 200 $ 14,000 $369, 000 Direct labor-hours Material receipts Relay assembly General factory Number of orders Number of receipts Number of relays Machine-hours Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related per DLH Purchase orders per order Material receipts per receipt Relay assembly per relay General factory per MH
answer in text form please (without image)
Snowflake Company has two service departments (S1 and S2) and two producing departments (P1 and P2). Department S1 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet. Data on direct department costs, number of employees, and space occupied are as follows: Direct dept. costs Number of employees Space occupied P1 P2 0 S1 S2 P1 $15,000 $22,000 $55,000 0 10 2,000 If Snowflake uses the direct method, what is the ratio representing the portion of Department S2 allocated to P2? 25 5 1,000 3,000 P2 $60,000 30 7,000
Flamingos, Inc. has two service departments and two operating (production) departments. Administrative Department costs are allocated to the Assembly and Packaging departments based on the number of employees, and Maintenance Department costs are allocated to the Assembly and Packaging departments based on square feet occupied. Data for these departments follows: Department Direct Expenses No. of Employees Square Feet Administrative $ 30,000 Maintenance 15,000 Assembly 70,000 6 2,000 Packaging 45,000 4 3,000 The total amount of service department costs (Administrative and Maintenance) that would be allocated to the Packaging Department is:
Vieute Company operates with two producing departments, P1 and P2, nd two service departments, S1 and S2. Actual manufacturing overhead bofore allocation of service department costs, together with the usage of service from the service departments, is as follows: Actual Manufacturing Overhead Before Allocation of Service Departmental Costs Services provided by S2 Department si P1 P 40,000 40% 20% 50 40 47,600 14,400 18,000 P2 si S2 40 10 P120,000 100% 100% What is the total manufacturing overhead for P1 (Producing Department 1), after allocating service costs to producing departments. Using data for Vicente, compute the total manufacturing overhead for P1, allocating service department costs stepwise, beginning with department 52. After a department expenses have been allocated, no expenses are assigned back to it. Based on Vicente data: Determine the total manufacturing overhead (including service department costs) for P2 using the reciprocal method.
1. Determine the total estimated overhead cost for each of the producing departments after allocating the cost of the service department. A. Using employee headcount as the allocation base. B. Using occupied space as the allocation base. C. Using productive capacity as the allocation base. D. Using the 3-year average use as the allocation base.
Job Order Costing for a Service Company The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 45% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances $82,200 24,700 57,500 35,300 $199,700 Vault Bank Take Off Airlines Sleepy Tired Hotels Tastee Beverages Total During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Vault Bank Take Off Airlines Sleepy Tired Hotels Tastee Beverages…
Indigo's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $261200, $147600, and $59300, respectively. Information on the hours used are as follows: Acct Admin HR Surgery ER Hours in Acct 20 48 360 220 Hours in Admin 16 8 120 80 Hours in HR 8 65 130 What amount of costs would be allocated from the accounting department to the other support departments (admin and HR) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.) O $0. O $27403 O $28939. O $28726.
Sheffield's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $271300, $153300, and $66700, respectively. Information on the hours used are as follows: Acct Admin HR Surgery ER Hours in Acct 20 48 360 220 Hours in Admin 16 8 120 80 Hours in HR 8 4 65 130 What amount of costs would be allocated from the accounting department to the other support departments (admin and HR) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.) O $30079. O $28381. O $0. O $29866.
Required Information [The following information applies to the questions displayed below.] Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control Fabricating Finishing Direct Costs $ 143,600 Total Allocated Costs 104, 200 44,700 83,500 Repair 0 0.8 Proportion of Services Used by Quality Control 0.2 8 Fabricating Finishing 0.5 0.1 Required: Compute the allocation of service department costs to producing departments using the direct method. Note: Do not round Intermediate calculations. Round your final answers to the nearest whole dollar. 0.3 0.1
Culver's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $270300, $154500, and $63000, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct O $252768. $0. $275348. $277601. 16 8 Admin HR 48 20 4 8 Surgery ER 360 120 65 220 80 130 What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediate calculations.)
Novak's Medical operates three support departments and two operating units. Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $273400, $156400, and $62000, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct O $16416. O $0. O $17186. O $17897. 16 8 Admin 20 4 HR 48 8 Surgery ER 360 120 65 220 80 130 What amount of costs would be allocated from the administrative department to the other support departments (Acct and HR) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.)