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 HR Publishing Binding IT tickets 0 1,500 2,400 2,100 Employees 16 0 24 40 Department direct costs $150,000 $247,500 $430,000 $390,000 Required: 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. IT HR Publishing Binding Service Department Costs IT Allocation HR Allocation Total Costs Allocated $ $ $ $
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 HR Publishing Binding IT tickets 0 1,500 2,400 2,100 Employees 16 0 24 40 Department direct costs $150,000 $247,500 $430,000 $390,000 Required: 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. IT HR Publishing Binding Service Department Costs IT Allocation HR Allocation Total Costs Allocated $ $ $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | HR | Publishing | Binding | |
| IT tickets | 0 | 1,500 | 2,400 | 2,100 |
| Employees | 16 | 0 | 24 | 40 |
| Department direct costs | $150,000 | $247,500 | $430,000 | $390,000 |
Required:
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.
| IT | HR | Publishing | Binding | |
|
Service Department Costs |
||||
| IT Allocation | ||||
| HR Allocation | ||||
|
Total Costs Allocated |
$ | $ | $ | $ |
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