Question

In: Accounting

please i need unique answer , don't copy and paste ,, don't use handwriting.. can you...

please i need unique answer , don't copy and paste ,, don't use handwriting..

can you complete my answer , i need you answer b only

Question:

3- Al Yamamah Steel Industries Co. uses the step method for allocating the costs of its service departments to operating departments. The company has two support departments (Human Resource and Information Technology) and two operating departments (Hot Rolled Hollow Steel and Cold Rolled Hollow Steel).

Al Yamamah Steel Industries Co. decided to allocate Human Resource department costs based on the number of employees in each department and Information Technology costs based on the number of machine hours in each department.       (4 Points).

Required:

a- Give a numerical example for the four departments as a given information.

Support Departments

Operating Departments

TOTAL

Human Resource

Information Technology

Hot Rolled Hollow Steel

cold Rolled Hollow Steel

Total department cost

Number of employees

Number of machine hours

b- Then based on your given information, use the step-down method to allocate support department costs.

Allocate cost:

Human Resource

Information Technology

TOTAL

Answers will be varied among students

my answer a ,, and please correct my answer a and complete b

here answer a

https://www.chegg.com/homework-help/questions-and-answers/please-need-unique-answer-don-t-copy-paste-don-t-use-handwriting-3-al-yamamah-steel-indust-q35831976?trackid=tIjyfMn4

Solutions

Expert Solution

--Requirement ‘a’ Independent data for allocation

Support Departments

Operating Departments

TOTAL

Human Resource

Information Technology

Hot Rolled Hollow Steel

cold Rolled Hollow Steel

Total department cost

$500,000

$212,500

$800,000

$750,000

$2,262,500

Number of employees

60

50

50

160

Number of machine hours

100

150

250

500

--Requirement ‘b’: Allocation of above department cost

Human Resource

Information Technology

Hot Rolled Hollow Steel

cold Rolled Hollow Steel

TOTAL

Total department cost

$500,000

$212,500

$800,000

$750,000

$2,262,500

Allocate cost:

Human Resource

($500,000)

$187,500

$156,250

$156,250

$0

[500000 x 60/160]

[500000 x 50/160]

[500000 x 50/160]

Information Technology

($400,000)

$150,000

$250,000

$0

[400000 x 150/400]

[400000 x 250/400]

TOTAL

$0

$0

$1,106,250

$1,156,250

$2,262,500


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