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 Required: IT HR 0 16 1,500 0 Publishing 2,400 24 Binding 2,100 40 $ 150,000 $ 247,500 $ 430,000 $ 390,000 Use the direct method to allocate these service department costs to the operating departments. 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. Answer is not complete. HR $ 247,500 $ IT Service department costs $ 150,000 IT allocation (150,000) HR allocation 0 Total costs allocated $ 0 $ (247,500) Publishing Binding 0 $ 0 0 $ 0.00 $ 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 tickets Employees Department direct costs Required: IT HR 0 16 1,500 0 Publishing 2,400 24 Binding 2,100 40 $ 150,000 $ 247,500 $ 430,000 $ 390,000 Use the direct method to allocate these service department costs to the operating departments. 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. Answer is not complete. HR $ 247,500 $ IT Service department costs $ 150,000 IT allocation (150,000) HR allocation 0 Total costs allocated $ 0 $ (247,500) Publishing Binding 0 $ 0 0 $ 0.00 $ 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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