Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operatingdepartments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each ITrequest) 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 ticketsEsployeesDepartment direct costsa. The order of allocation starts with IT.b. The order of allocation starts with HR.Show Transcribed TextITFrom:Service department costsIT0HRTotal costs16$ 156,000Required:Use the step method to allocate the service costs, using the following:$HR1,7000$ 266,200Complete this question by entering your answers in the tabs below.Publishing1,70024Required A Required BUse the step method to allocate the service costs, using the following:The order of allocation starts with IT.Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.00$$430,000Cost Allocation To:HR0 $Publishing$Binding5,10040$ 390,000Required 1Binding Complete this question by entering your answers in the tabs below.Required BUse the step method to allocate the service costs, using the following:The order of allocation starts with HR.Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.Required AFrom:Service department costsHRITTotal costs$HR0 $Cost Allocation To::ITPublishing< Required A0 $0 $Binding

There are various methods to allocate service or support departments' costs to other production or…

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 IT HR 1,700 0 O 16 $ 156,000 $ 266,200 a. The order of allocation starts with IT. b. The order of allocation starts with HR. Publishing 1,700 24 $430,000 Required: Use the step method to allocate the service costs, using the following: Binding 5,100 40 $ 390,000

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 IT HR 1,700 0 O 16 $ 156,000 $ 266,200 a. The order of allocation starts with IT. b. The order of allocation starts with HR. Publishing 1,700 24 $430,000 Required: Use the step method to allocate the service costs, using the following: Binding 5,100 40 $ 390,000

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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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: \table[[,IT,HR,Publishing,Binding],[,0,1,550,2,480,2,170],[IT tickets,16,0,24,40],[\table[[Employees],[Department direct costs]],$154,000,$248,400,$432,000,$395,000
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