Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service departments (Accounting and Facilities) at DuBay Films for the past month follow: Supplying Department Accounting Facilities Direct cost Required: Accounting 0 0.10 $ 140,000 Facilities Using Department Training Independent Commercial 0.40 0.20 0 0.10 0.10 0.20 0.30 0.60 $ 159,500 $ 280,000 $ 196,000 $ 282,000 Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. From: Service department costs Accounting Facilities Total allocations Direct costs Total costs Cost Allocation To: Accounting Facilities Training Independent Commercial $ 0 $ 0 $ 0 S 0 $ 0 S 0 $ 0 $ $ Q $ 0
Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service departments (Accounting and Facilities) at DuBay Films for the past month follow: Supplying Department Accounting Facilities Direct cost Required: Accounting 0 0.10 $ 140,000 Facilities Using Department Training Independent Commercial 0.40 0.20 0 0.10 0.10 0.20 0.30 0.60 $ 159,500 $ 280,000 $ 196,000 $ 282,000 Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. From: Service department costs Accounting Facilities Total allocations Direct costs Total costs Cost Allocation To: Accounting Facilities Training Independent Commercial $ 0 $ 0 $ 0 S 0 $ 0 S 0 $ 0 $ $ Q $ 0
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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