What is the recipricol formula? Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information:Janitorial Department UsageCafeteria50%Cutting10%Assembly40%Cafeteria Department UsageJanitorial20%Cutting60%Assembly20%Janitorial Department costs are $450,000.Cafeteria Department costs are $250,000.What are the correct equations to represent (a) the total Janitorial (J) costs, (b) the total Cafeteria (C) costs, and (c) the rewritten equationsubstituting C into J?a. J = $b. C = $% x+ {% x [$C. J = $1011/

Under reciprocal method, services provided by one service department to other service department is…

Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information: Janitorial Department Usage Cafeteria 50% 10% Cutting 40% Assembly Cafeteria Department Usage 20% Janitorial 60% Cutting 20% Assembly Janitorial Department costs are $450,000. Cafeteria Department costs are $250,000. What are the correct equations to represent (a) the total Janitorial (J) costs, (b) the total Cafeteria (C) costs, and (c) the rewritten equation substituting C into J? % x + a. J = $ % x b. C = $ + ( % x + % x [$ c. J = $

Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information: Janitorial Department Usage Cafeteria 50% 10% Cutting 40% Assembly Cafeteria Department Usage 20% Janitorial 60% Cutting 20% Assembly Janitorial Department costs are $450,000. Cafeteria Department costs are $250,000. What are the correct equations to represent (a) the total Janitorial (J) costs, (b) the total Cafeteria (C) costs, and (c) the rewritten equation substituting C into J? % x + a. J = $ % x b. C = $ + ( % x + % x [$ c. J = $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Bryant Company uses the reciprocal services method to allocate support department costs and has provided the following information. Using the reciprocal services method, create the algebraic expressions for the two equations needed to capture the total costs for each of the two support departments. Janitorial Department Usage Cafeteria 50% Cutting Assembly 10% 40% Cafeteria Department Usage Janitorial 20% 60% Cutting Assembly 20% Janitorial Department costs are $450,000. Cafeteria Department costs are $250,000. Edit Format Table 12ptv Paragraph
Bryant Company uses the reciprocal services method to allocate support department costs and has provided the following information. What is the total Janitorial Department cost using the reciprocal services method? Janitorial Department Usage Cafeteria 50% Cutting Assembly 10% 40% Cafeteria Department Usage Janitorial 20% Cutting Assembly 60% 20% Janitorial Department costs are $450,000. Cafeteria Department costs are $250,000.
Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs. It has the following information about its two service departments and two production departments, Cutting and Assembly: Line Item Description Costs Square Feet Number ofEmployees Janitorial Department $450,000 100 20 Cafeteria Department 200,000 10,000 10 Cutting Department 1,500,000 2,000 60 Assembly Department 3,000,000 8,000 20 How much of the Janitorial Department’s $450,000 costs is allocated to the Cutting Department? a. $45,000 b. $44,550 c. $360,000 d. $90,000
Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs. It has the following information about its two service departments and two production departments, Cutting and Assembly: Line Item Description Costs Square Feet Number ofEmployees Janitorial Department $450,000 100 20 Cafeteria Department 200,000 10,000 10 Cutting Department 1,500,000 2,000 60 Assembly Department 3,000,000 8,000 20 The percentage (proportional) usage of the Janitorial Department by the Cutting Department is a. 80% b. 9% c. 10% d. 20%
Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs. It has the following information about its two service departments and two production departments, Cutting and Assembly: Line Item Description Costs Square Feet Number ofEmployees Janitorial Department $450,000 100 20 Cafeteria Department 200,000 10,000 10 Cutting Department 1,500,000 2,000 60 Assembly Department 3,000,000 8,000 20 The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is a. 22% b. 18% c. 75% d. 25%
Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs. It has the following information about its two service departments and two production departments, Cutting and Assembly: Number of Employees 20 10 60 20 Costs Janitorial Department $450,000 Cafeteria Department 200,000 Cutting Department 1,500,000 Assembly Department 3,000,000 Square Feet 100 10,000 2,000 8,000 The percentage (proportional) usage of the Janitorial Department by the Cutting Department is Oa. 20% Ob. 9.9% Oc. 80% Od. 10%
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Square Feet Number ofEmployees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 If the Janitorial Department incurs costs of $200,000, how much of that cost is allocated to the Cutting Department?
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Square Feet Number ofEmployees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 If the Janitorial Department incurs costs of $200,000, how much of that cost is allocated to the Cutting Department? a. $160,000 b. $40,000 c. $19,800 d. $20,000
Madison Park Co-op, a whole foods grocery and gift shop, provided the following data for its service department cost allocations: Service Departments Administration $ 200,000 Operating Departments Groceries Gifts $ 3,870,000 2,730 490 700 9,200 Departmental costs before allocations Employee-hours Space occupied-square feet Required: Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate Administration first on the basis of employee-hours and then Janitorial based on space occupied. Departmental costs before allocations Allocations: Janitorial $ 60,000 Administration costs Janitorial costs Total costs after allocations Note: Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Service Departments Administration Janitorial 320 1,200 Operating…
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Number of Square Feet Employees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 The percentage (proportional) usage of the Janitorial Department by the Cutting Department is Oa. 10% Ob. 80% Oc. 9.9% Od. 20%
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Janitorial Department Cafeteria Department Cutting Department Assembly Department Square Feet a. 80% b. 20% Oc. 10% Od. 9.9% Number of Employees 20 10 60 20 100 10,000 2,000 8,000 The percentage (proportional) usage of the Janitorial Department by the Cutting Department is
Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in its service department cost allocations: Departmental costs before allocations Employee-hours Space occupied-square feet Required: Service Departments Administration Janitorial $ 190,000 $ 70,000 490 800 340 1,200 2,710 Operating Departments Groceries Gifts $ 3,840,000 $ 330,000 150 9,400 600 Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate Administration first on the basis of employee-hours and then Janitorial on the basis of space occupied. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Service Departments Administration Janitorial 190,000 $ Operating Departments Groceries Total Gifts 70,000 $3,840,000 $ 330,000 $ 4,430,000…