BBC Company has two service departments (A and B) and two producing departments (C and D). Last year, direct costs were A $80,000; B $66,000; C $15,000 and D $20,000. A provides services to B 10%, C 60% and D 30% while B provides services to A 30%, C 20% and D 50%. Using the algebraic method, Dept. A's allocation to Dept. C was $14,021 $21,031 $61,732 $60,619
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BBC Company has two service departments (A and B) and two producing departments (C and D). Last year, direct costs were A $80,000; B $66,000; C $15,000 and D $20,000. A provides services to B 10%, C 60% and D 30% while B provides services to A 30%, C 20% and D 50%. Using the algebraic method, Dept. A's allocation to Dept. C was
$14,021
$21,031
$61,732
$60,619
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- Mayfair Company has two service departments (A and B) and two producing departments (C and D). Last year, direct costs were A $80,000; B $60,000; C $15,000 and D $20,000. A provides services to B 10%, C 60% and D 30% while B provides services to A 30%, C 20% and D 50%. Using the algebraic method, Dept. A's allocation to Dept. C was $35,051$14,021$21,031$60,619Sacramento Company has two service departments (A and B) and two producing departments (C and D). Last year, direct costs were A P80,000; B P60,000; C P15,000 and D P20,000. A provides services to B 10%, C 60% and D 30% while B provides services to A 30%, C 20% and D 50%. Using the algebraic method, Dept. A's allocation to Dept. C was * P60,619. P14,021. P21,031. P35,051.Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT IT 05 10% Accounting HR 8% 20% 10% Allocation Service department costs IT allocation Accounting allocation HR allocation Total costs allocated 0% Accounting HR The direct costs of the service departments in the previous period were $184,650 for IT, $100,000 for Accounting, and $113,500 for HR. $ Required: Use the reciprocal method to allocate the service department costs to the production departments. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. IT West East 40% 40% 60% 60% 40% 20% 0 $ Accounting 0 $ HR 0 $ West 0 $ East 0
- Lock Company has two producing and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of service costs used by the various departments are as follows: (P1, $300,000); (P2, $200,000); (S1, $100,000; S2-25%, P1-50%, P2-25%); (S2, $40,000; S1-10%, P1-50%, P2-40%). What is the total cost of P1 if the costs of service departments are allocated using the direct method? $388,889 $386,111 $386,666 $370,000 P377,778Freezo Proprietary Limited has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of 12,163 are allocated on the basis of standard service used. The Personnel Department costs of 3,745 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are R9 000 and R15 000, respectively. Data on standard service hours and number of employees are as follows: MD PD P1 P2 Standard service hours 100 50 325 176 Number of employees 10 20 148 101 Direct labour hours 50 50 250 250 Using the direct method, calculate the cost of the support departments allocated to Department P1.Your Companey has two service departments – Personnel and Maintenance. The Maintenance Department's costs of $160,000 are allocated on the basis of standard hours used. The Personnel Department's costs of $40,000 are allocated based on the number of employees. The costs of the operating Departments A and B are $80,000 and $120,000, respectively. Data on standard service hours and number of employees are as follows: Standard Service Maintenance Dept. Personnel Dept. Production Depts. A B Hours used - 400 480 320 Number of Employees 20 - 80 240 What is the cost of the Maintenance Department allocated to Department B using the direct method? What is the cost of the…
- Oak Company has two producing and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of service costs used by the various departments are as follows: (P1, $300,000); (P2, $200,000); (S1, $100,000; S2-25%, P1-50%, P2-25%); (S2, $40,000; S1-10%, P1-50%, P2-40%). What is the total cost of P2 if the costs of service departments are allocated using the step method (start with S1)? $253,334$262,222 $253,889 $251,111 $241,000Founder Consulting Corporation has its headquarters in Memphis and operates from three branch offices in Nashville, Atlanta, and Louisville. Two of the company's activity cost pools are Administrative Service and Development Service. These costs are allocated to the three branch offices using an activity-based costing system. Information for next year follows: Activity Cost Pool Activity Measure Estimated Cost Administrative service % of time devoted to branch $ 1,680,000 Development service Computer time $ 630,000 Estimated branch data for next year is as follows: Time to branch Computer time Nashville 70 % 1,600,000 minutes Atlanta 20 % 1,200,000 minutes Louisville 10 % 400,000 minutes Total 100 % 3,200,000 minutes How much of the headquarters cost allocation should Nashville expect to receive next year?John Company has two service departments, Maintenance and Human Resources. John Company also has two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while Human Resources costs are allocated based on number of employees. The information given below has been gathered for the current year. If the direct method is used to allocate service department costs, then the total cost of the Mixing Department after allocation would be Human Resources Maintenance $126,000 800 8. Mixing S105,000 1,600 24 Finishing $175,000 1,200 32 Direct costs $84,000 Square footage Number of employees 400 12 $108,000 O $213,000 O $199,500 O $36,000 $105,000
- Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repairs HR IT Repairs HR 0% Service department costs Repairs allocation HR allocation IT allocation Total costs allocated 10% 0% - 10% IT 0% 20% The direct costs of the service departments in the previous period were $92,000 for Repairs, $111,600 for HR, and $207,000 for IT. Required: Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) M1 40% 35% 20% Repairs M2 60% 35% 70% HR IT M1 M2BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Employees Transactions Department direct costs Required A Administration 37,000 $363,000 Required: a. Allocate the cost of the service departments to the operating departments using the direct method. b. Allocate the cost of the service departments to the operating departments using the step method. Start with Administration. c. Allocate the cost of the service departments to the operating departments using the reciprocal method. Complete this question by entering your answers in the tabs below. Required B Required C From Accounting Domestic International 26 47 22,000 $141,000 $955,000 Department costs Administration allocation Accounting allocation Total cost Allocate the cost…Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations follows: Employees Hours Department direct costs Costs Personnel Legal Complete this question by entering your answers in the tabs below. Total Personnel $ Personnel $ 10,800 $ 320,000 Required: a. Allocate the cost of the service departments to the operating divisions using the direct method. b. Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal. c. Allocate the cost of the service departments to the operating divisions using the reciprocal method. 320,000 $ 320,000 $ Required A Required B Required C Allocate the cost of the service departments to the operating divisions using the reciprocal method. Note: Do not round intermediate calculations. Round your final answers…