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

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