Question
In: Accounting
Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are...
Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:
| Support Departments | Production Department | |||
| Maint Department | Personnel Department | A | B | |
| Budgeted Costs | $320,000 | $80,000 | $160,000 | $240,000 |
| Budgeted Maintenance hours | NA | 800 | 960 | 640 |
| Number of employees | 40 | NA | 160 | 480 |
Required
1-Allocate the costs of the service departments to the production departments using the direct method
2-Allocate the costs of the service departments to the production departments using the step-down method, if the service department with the highest percentage of interdepartmental support service is allocated first. (Round up)
Solutions
ekkarill92 answered 2 days agoRelated Solutions
Mushed’s String Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are...
Mushed’s String Company has two service departments, Maintenance
and Personnel. Maintenance Department costs of $320,000 are
allocated on the basis of budgeted maintenance-hours. Personnel
Department costs of $80,000 are allocated based on the number of
employees. The costs of operating departments A and B are $160,000
and $240,000, respectively. Data on budgeted maintenance-hours and
number of employees are as follows:
Support Departments
Production Departments
Maintenance
Personnel
A
B
Budgeted costs
$320,000
$80,000
$160,000
$240,000
Budgeted maintenance-hours
NA
200
240
160...
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $160,000 are...
Jake's Battery Company has two service departments, Maintenance
and Personnel. Maintenance Department costs of $160,000 are
allocated on the basis of budgeted maintenance-hours. Personnel
Department costs of $40,000 are allocated based on the number of
employees. The costs of operating departments A and B are $80,000
and $120,000, respectively. Data on budgeted maintenance-hours and
number of employees are as follows:
Support Departments
Production Departments
Maintenance Department
Personnel Department
A
B
Budgeted costs
$160,000
$40,000
$80,000
$120,000
Budgeted maintenance-hours
NA
400...
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are...
Jake's Battery Company has two service departments, Maintenance
and Personnel. Maintenance Department costs of $300,000 are
allocated on the basis of budgeted machine-hours. Personnel
Department costs of $100,000 are allocated based on the number of
employees. The costs of operating departments A and B are $160,000
and $240,000, respectively. Data on budgeted maintenance-hours and
number of employees are as follows:
Support Departments
Production Departments
Maintenance Department
Personnel Department
A
B
Budgeted costs
$300,000
$100,000
$160,000
$240,000
Budgeted maintenance-hours
NA
800...
Question 4: Service department cost allocation Inns Battery Company has two service departments: Maintenance and Personnel....
Question 4: Service department cost
allocation
Inns Battery Company has two service departments: Maintenance
and Personnel. Maintenance Department costs are allocated on the
basis of budgeted maintenance-hours. Personnel Department costs are
allocated based on the number of employees. Data on budgeted
maintenance-hours and number of employees are as follows:
Support Departments
Production Departments
Maintenance Department
Personnel Department
A
B
Budgeted costs
$180,000
$30,000
$80,000
$120,000
Budgeted maintenance-hours
n/a
240
720
240
Number of employees
20
n/a
60
120
Required:
4a....
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated...
Hanung Corp has two service departments, Maintenance and
Personnel. Maintenance Department costs of $300,000 are allocated
on the basis of budgeted maintenance-hours. Personnel Department
costs of $100,000 are allocated based on the number of employees.
The costs of operating departments A and B are $160,000 and
$240,000, respectively. Data on budgeted maintenance-hours and
number of employees are as follows:
Support Departments
Production Departments
Maintenance Department
Personnel Department
A
B
Budgeted costs
$300,000
$100,000
$160,000
$240,000
Budgeted maintenance-hours
NA
800
1,200...
Bolton Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated...
Bolton Corp has two service departments, Maintenance and
Personnel. Maintenance Department costs of $300,000 are allocated
on the basis of budgeted maintenance-hours. Personnel Department
costs of $100,000 are allocated based on the number of employees.
The costs of operating departments A and B are $160,000 and
$240,000, respectively. Data on budgeted maintenance-hours and
number of employees are as follows:
Support Departments
Production Departments
Maintenance Department
Personnel Department
A
B
Budgeted costs
$300,000
$100,000
$160,000
$240,000
Budgeted maintenance-hours
NA
800
1,200...
CJ’s Motorcycle Store has two service departments: Maintenance and Personnel. The maintenance department’s costs are allocated...
CJ’s Motorcycle Store has two service departments: Maintenance
and Personnel. The maintenance department’s costs are allocated on
the basis of maintenance hours. The personnel department’s costs
are allocated based on the number of employees. CJ has two
production departments: Assembly and Repairs. The following data is
provided to you for review: Support Departments Production
Departments Maintenance Personnel Assembly Repairs Budgeted
costs
Support Departments
Support Departments
Production Departments
Production Departments
Maintenance
Personnel
Assembly
Repairs
Budgeted cost
$320,000
$80,000
$160,000
$240,000
Budgeted...
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing)....
University Printers has two service departments (Maintenance and
Personnel) and two operating departments (Printing and Developing).
Management has decided to allocate maintenance costs on the basis
of machine-hours in each department and personnel costs on the
basis of labor-hours worked by the employees in each.
The following data appear in the company records for the current
period:
Maintenance
Personnel
Printing
Developing
Machine-hours
—
1,000
1,000
3,000
Labor-hours
500
—
500
2,000
Department
direct costs
$
5,000
$
12,000
$
15,000...
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing)....
University Printers has two service departments (Maintenance and
Personnel) and two operating departments (Printing and Developing).
Management has decided to allocate maintenance costs on the basis
of machine-hours in each department and personnel costs on the
basis of labor-hours worked by the employees in each.
The following data appear in the company records for the current
period:
Maintenance
Personnel
Printing
Developing
Machine-hours
−
504
648
2,448
Labor-hours
360
−
252
1,188
Department direct costs
$
12,000
$
27,000
$
27,000...
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing)....
University Printers has two service departments (Maintenance and
Personnel) and two operating departments (Printing and Developing).
Management has decided to allocate maintenance costs on the basis
of machine-hours in each department and personnel costs on the
basis of labor-hours worked by the employees in each.
The following data appear in the company records for the current
period:
Maintenance
Personnel
Printing
Developing
Machine-hours
—
1,000
1,000
3,000
Labor-hours
500
—
500
2,000
Department direct costs
$
5,000
$
12,000
$
15,000...
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