Question
In: Accounting
Campaign Printing has two service departments, S1 and S2, and two production departments, P1 and P2....
Campaign Printing has two service departments, S1 and S2, and two production departments, P1 and P2.
The data for May were as follows:
|
Services provided to: |
|||||
|
Activity |
Pre-allocation Costs |
S1 |
S2 |
P1 |
P2 |
|
S1 |
$90,000 |
10% |
40% |
50% |
|
|
S2 |
$60,000 |
20% |
55% |
25% |
|
|
Pre-allocation Costs |
|||||
|
P1 |
$360,000 |
||||
|
P2 |
$520,000 |
||||
Required:
Allocate service departments costs (S1 & S2) to the production departments (P1 & P2) using reciprocal method
- Set up linear equations to solve for the total costs incurred in S1 and S2. (Note: if you use repeated iteration, you won’t get any points!!!)
- Determine total costs for each department by first solving the equations from part i. and then performing the necessary allocation. (note: round to the nearest integer)
Solutions
ekkarill92 answered 8 months agoRelated Solutions
Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2....
Craylon Corp has two service departments, S1 and S2, and two
production departments, P1 and P2.
The data for April were as follows:
Services provided to:
Activity
Costs
S1
S2
P1
P2
S1
$100,000
25%
40%
35%
S2
$80,000
10%
55%
35%
Fixed Costs
P1
$400,000
P2
$500,000
One of the algebraic equations in linear form
for an activity using the reciprocal method is
S2 = 80,000 +.25S1
S1=100,000 + .25S2
S2 = 80,000 + .35S1
S1 = 100,000 +.10S2
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and...
Robinson Products Company has two service departments (S1 and
S2) and two production departments (P1 and P2). The distribution of
each service department’s efforts (in percentages) to the other
departments is:
From
To
S1
S2
P1
P2
S1
—
10
%
20
%
?
%
S2
10
%
—
?
30
The direct operating costs of the departments (including both
variable and fixed costs) are:
S1
$
180,000
S2
60,000
P1
50,000
P2
120,000
Required:
1. Determine the total cost...
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and...
Robinson Products Company has two service departments (S1 and
S2) and two production departments (P1 and P2). The distribution of
each service department’s efforts (in percentages) to the other
departments is:
From
To
S1
S2
P1
P2
S1
—
20
%
30
%
?
%
S2
20
%
—
?
40
The direct operating costs of the departments (including both
variable and fixed costs) are:
S1
$220,000
S2
$74,000
P1
$61,000
P2
$175,000
Required:
1. Determine the total cost of...
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and...
Robinson Products Company has two service departments (S1 and
S2) and two production departments (P1 and P2). The distribution of
each service department’s efforts (in percentages) to the other
departments is:
From
To
S1
S2
P1
P2
S1
—
20
%
30
%
?
%
S2
20
%
—
?
40
The direct operating costs of the departments (including both
variable and fixed costs) are:
S1
$
265,000
S2
83,000
P1
70,000
P2
220,000
Required:
1. Determine the total cost...
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and...
Robinson Products Company has two service departments (S1 and
S2) and two production departments (P1 and P2). The distribution of
each service department’s efforts (in percentages) to the other
departments is:
TO
FROM
S1
S2
P1
P2
S1
-
20%
30%
?%
S2
20%
-
?
40%
The direct operating costs of the departments (including both
variable and fixed costs) are:
S1
$ 220,000
S2
$74,000
P1
$ 61,000
P2
$175,000
Required:
1. Determine the total cost of P1 and...
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and...
Robinson Products Company has two service departments (S1 and
S2) and two production departments (P1 and P2). The distribution of
each service department’s efforts (in percentages) to the other
departments is:
From
To
S1
S2
P1
P2
S1
—
20
%
30
%
?
%
S2
20
%
—
?
40
The direct operating costs of the departments (including both
variable and fixed costs) are:
S1
$
250,000
S2
80,000
P1
67,000
P2
205,000
Required:
1. Determine the total cost...
Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1 and...
Motorcade Company has three service departments (S1, S2, and S3)
and two production departments (P1 and P2). The following data
relate to Motorcade's allocation of service department costs:
Round to two decimal places.
Budgeted Costs
Nbr of Employees
S1
$3,120,000
75
S2
2,060,000
50
S3
1,000,000
25
P1
150
P2
225
Service department costs are allocated by the direct method. The
number of employees is used as the allocation base for all service
department costs
Calculate the total service department...
Leader Company has two support departments (S1 and S2) and two producing departments (P1 and P2)....
Leader Company has two support departments (S1 and S2) and two
producing departments (P1 and P2). Estimated direct costs and
percentages of services used by these departments are as
follows:
Allocation of support departments
S1
S2
P1
P2
S1
-
10%
40%
50%
S2
20%
-
50%
30%
Direct costs
£4,500
£8,000
£10,000
£15,000
Required:
a.
Prepare a schedule allocating the support department costs to
the producing departments using the direct allocation method.
b.
Prepare a schedule allocating the support...
Leader Company has two support departments (S1 and S2) and two producing departments (P1 and P2)....
Leader Company has two support departments (S1 and S2) and two
producing departments (P1 and P2). Estimated direct costs and
percentages of services used by these departments are as
follows:
Allocation of support departments
S1
S2
P1
P2
S1
-
10%
40%
50%
S2
20%
-
50%
30%
Direct costs
£4,500
£8,000
£10,000
£15,000
Required:
a.
Prepare a schedule allocating the support department costs to
the producing departments using the direct allocation method.
b.
Prepare a schedule allocating the support...
Leader Company has two support departments (S1 and S2) and two producing departments (P1 and P2)....
Leader Company has two support departments (S1 and S2) and two
producing departments (P1 and P2). Estimated direct costs and
percentages of services used by these departments are as
follows:
Allocation of support departments
S1
S2
P1
P2
S1
-
10%
40%
50%
S2
20%
-
50%
30%
Direct costs
£4,500
£8,000
£10,000
£15,000
Required:
a.
Prepare a schedule allocating the support department costs to
the producing departments using the direct allocation method.
b.
Prepare a schedule allocating the support...
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