Question
In: Accounting
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 | $ | 18,000 | ||||
Required:
Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.)
|
|||||||||||||||||||||||||||||||
Solutions
Expert Solution
Setup the formula to cost alloaction
Maintenance cost = Maintenance department cost +Alloacated from personnel department cost.
Personnel cost = Personnel department cost + Alloacated from Maintenance department cost.
Maintenance cost = $12,000 + (360/1,8/00 personnel departmrnt cost.
Personnel cost = $27,000 + (504/3,600 of maintenace department cost)
M = $12,000 + .2*($27,000 + (.14 of M)
M = $12,000 + ($5,400+.028 of M)
.972 M = $17,400 (Rounded)
M = $17,400/.972 = $17,901.23
Personnel cost = $27,000 + ($17,901*14%) = $29,506.17
Allocation base
| Maintenance | Personnel | Printing | Developing | |
| Maintenance cost alloacated | - | 14%(504/3,600) | 18%(648/3,600) | 68%(2,448/3,600) |
| Personnel cost allocated | 20%(360/1,800) | - | 14%(252/1,800) | 66%(1,188/1,800) |
Cost Allocation To:
| Maintenance | Personnel | Printing | Developing | |
| Department Cost | $12,000 | $27,000 | $27,000 | $18,000 |
| Maintenance cost alloacated | ($17901.23) | $2,506.17 | $3,222.22 | $12,172.83 |
| Personnel cost allocated | $5,901.23 | ($29,506.17) | $4,130.86 | $19,474.07 |
| Total | 0 | 0 | $34,353.08 | $49,646.9 |
ekkarill92 answered 1 year agoRelated Solutions
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
—
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
—
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
—
1,000
1,000
3,000
Labor-hours
500
—
500
2,000
Department direct costs
$
16,000
$
38,750
$
49,100...
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
−
640
520
2,840
Labor-hours
399
−
357
1,344
Department direct costs
$
11,000
$
22,000
$
30,000...
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
—
2,000
2,000
4,000
Labor-hours
900
—
900
2,100
Department direct costs
$
3,600
$
13,600
$
14,200...
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
$
14,500
$
35,500
$
47,350...
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
−
640
520
2,840
Labor-hours
399
−
357
1,344
Department direct costs
$
11,000
$
22,000
$
30,000...
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...
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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- design a divide & conquer alogrithm that requires 2 recursive calls for array size greater than...
- Problem 8 ( please answer neatly ) a) Draw the dc-motor equivalent circuit and its representation...
- Write a C++ program that will output the multiplication table as show below: 1*1=1 2*1=2  
- Purpose of Assignment The purpose of this assignment is to allow students the opportunity to research...
- All else being equal, if a nation decided to intervene in free trade anyways, which of...
- Consider the following rates of return: Year / Large Company Stocks / US Treasury Bill 1...
- if I have results gram positive and Acid fast negative rod shape bacili you thing it's...
ADVERTISEMENT