Question
In: Accounting
Use the Direct Method to allocate Service Department Costs to the Operating Departments based on number...
-
Use the Direct Method to allocate Service Department Costs to the Operating Departments based on number (percentage) of employees.
Attacking Dept = 110 employees
Shark Dept = 135 employees
|
Service Dept. Maintenance |
Service Dept. Cafeteria |
Service Dept. Custodial |
Operating Dept. Painting |
Operating Dept. Welding |
|
|
Dept costs before allocation |
$200,000 |
110,000 |
275,000 |
500,000 |
850,000 |
|
Maintenance |
|||||
|
Cafeteria |
|||||
|
Custodial |
|||||
|
Total after allocation |
Solutions
Expert Solution
| Calculation of bases of allocation | |||||
| Painting dept | Operating dept | Total | |||
| 110 | 135 | 245 | |||
| % no. of employees | 45% | 55% | 100% | ||
| Allocation of costs | |||||
| Service dept | Operating dept | ||||
| Maintenance | Cafeteria | Custodial | Painting | Welding | |
| $ 200,000 | $ 110,000 | $ 275,000 | $ 500,000 | $ 850,000 | |
| Allocation of costs | |||||
| Maintenance | $ (200,000) | $ 89,796 | $ 110,204 | ||
| Cafeteria | $(110,000) | $ 49,388 | $ 60,612 | ||
| Custodial | $ (275,000) | $ 123,469 | $ 151,531 | ||
| Total after allocation | $ - | $ - | $ - | $ 762,653 | $1,172,347 |
For any clarification, please comment. Kindly Up Vote!
ekkarill92 answered 2 years agoRelated Solutions
Use the Direct Method to allocate Service Department Costs to the Operating Departments based on number...
Use the Direct Method to allocate Service Department Costs to
the Operating Departments based on number (percentage) of
employees.
Painting Dept = 110 employees
Welding Dept = 135 employees
Service Dept. Maintenance
Service Dept. Cafeteria
Service Dept. Custodial
Operating Dept. Painting
Operating Dept. Welding
Dept costs before allocation
$200,000
110,000
275,000
500,000
850,000
Maintenance
Cafeteria
Custodial
Total after allocation
Use the Step-Down Method to allocate Service Department costs to
the Operating Departments based on the number (percentage) of
employees.
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In order to allocate service departments' costs to production departments, there are three allocation methods (direct,...
In order to allocate service departments' costs to production
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Looking to compare, thanks. A) Allocate the two support departments' costs to the two operating departments...
Looking to compare, thanks.
A) Allocate the two support departments' costs to the two
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Direct Method
Step-down method (Allocate AS first)
Step -down method (Allocate IS first)
B) Compare and Explain differences in the support department
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C) What approaches might be used to decide the sequence in which
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Support
Operating
AS
IS
GOVT
CORP
Total
Budgeted
Overhead Costs Before...
45. The step method allocates costs of service departments to a. other service departments. b. producing departments....
45. The step method allocates
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a.
other service departments.
b.
producing departments.
c.
joint products.
d.
other service departments and producing
departments.
46. What is the
firststep in allocating service department costs
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a.
Assign overhead costs that are directly attributable to a
service or production department.
b.
Allocate other overhead costs based on appropriate cost
drivers.
c.
Allocate service department costs to production departments.
d.
None of the answers is correct.
Stephanie Company
Stephanie...
Assume that the company uses the step method of allocating service department overhead costs to operating...
Assume that the company uses the step method of allocating
service department overhead costs to operating departments and
Building and Grounds overhead costs are allocated first.
The overhead costs of the Personnel Department allocated to
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a. R112 970
b. R107 368
c. R107 590
d. R0
Company has two service departments and two operating
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departments are presented below: Building and Grounds Personnel
Operating Departments A B Overhead...
1. Looking to compare, thanks. A) Allocate the two support departments' costs to the two operating...
1.
Looking to compare, thanks.
A) Allocate the two support departments' costs to the two
operating departments using the following methods?
Direct Method
Step-down method (Allocate AS first)
Step -down method (Allocate IS first)
B) Compare and Explain differences in the support department
costs allocated to each operating department?
C) What approaches might be used to decide the sequence in which
to allocate support departments when using the step-down
method?
Support
Operating
AS
IS
GOVT
CORP
Total
Budgeted
Overhead Costs...
Andy Corp. has two service departments and two operating departments. The company allocates service departmental costs...
Andy Corp. has two service departments and two operating
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for these departments for last year are as follows: Service
Departments Operating Departments Personnel Maintenance Assembly
Machining Departmental costs $144,000 $84,000 $12,000 $34,000
Number of employees 35 30 90 60 Machine-hours 0 0 330 170 Personnel
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Operating Departments
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Maintenance
Assembly
Machining
Departmental costs
$144,000
$84,000
$12,000
$34,000
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90
60
Machine-hours
0
0
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It has the following information about its two service
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Square Footage is listed first:
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1,500
20
Cafeteria Department
2,000
10
Cutting Department
2,000
60
Assembly Department
8,000
20
a....
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