A35. Bramble Juice Company produces and distributes concentrated orange juice. It has been operating in two key customer segments foryears, selling to institutional customers and retail customers. The production departments are supported by the following threeservices: Administrative, Information Systems, and Maintenance. To date, the accounting team has simply allocated the support costsevenly between the two operating segments in order to determine total costs. Realizing that there are more accurate ways ofassigning these costs, the new controller has asked you to prepare support department cost allocations using three other (andarguably more accurate) methods. Financial information is as follows.Original costsProportion of Administrative hoursusedProportion of Information Systemshours usedProportion of Maintenance hoursusedTotal costs$AdministrativeInstitutional$77,0000.200.10Support DepartmentsOperating UnitsInformationSystems$110,600Retail0.100.10Maintenance Institutional Retail$62,000 $648,000 $351,0000.10Operating Segments0.10I0.450.40Use Excel to determine the total costs that each operating segment would be accountable for if support costs are allocated usingthe reciprocal method. (Round answers to 2 decimal places, e.g. 15.25.)0.300.350.300.50

The cost of the supporting department is allocated to the operating segments of the company. The…

Answered: Bramble Juice

Business

Accounting

Bramble Juice

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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