Departmental Cost Allocation Robinson Products Company has two service departments(S1 and S2) and two production departments (P1 and P2). The distribution of each service department’s efforts (in percentages) to the other departments is:ToFrom S1 S2 P1 P2S1 — 10% 20% ?%S2 10% — ? 30The direct operating costs of the departments (including both variable and fixed costs) are:S1 $180,000S2 60,000P1 50,000P2 120,000Required1. Determine the total cost of P1 and P2 using the direct method.2. Determine the total cost of P1 and P2 using the step method.3. Determine the total cost of P1 and P2 using the reciprocal method.

Departmental Cost Allocation Robinson Products Company has two service departments(S1 and S2) and two production departments (P1 and P2). The distribution of each service department’s efforts (in percentages) to the other departments is:ToFrom S1 S2 P1 P2S1 — 10% 20% ?%S2 10% — ? 30The direct operating costs of the departments (including both variable and fixed costs) are:S1 $180,000S2 60,000P1 50,000P2 120,000Required1. Determine the total cost of P1 and P2 using the direct method.2. Determine the total cost of P1 and P2 using the step method.3. Determine the total cost of P1 and P2 using the reciprocal method.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter12: Integer Linear Optimization_models

Section: Chapter Questions

Problem 6P: Hart Manufacturing makes three products. Each product requires manufacturing operations in three...

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Departmental Cost Allocation Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service depart- ment's efforts (in percentages) to the other departments is: To From S1 S2 P1 P2 S1 10% 20% ?% S2 10% 30 The direct operating costs of the departments (including both variable and fixed costs) are: S1 $180,000 S2 60,000 P1 50,000 P2 120,000 Required 1. Determine the total cost of P1 and P2 using the direct method. 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method.
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $270,000 to $290,000?
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first?
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the amount of service department cost allocated to P1 and P2 using the direct method?
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the total cost in P1 and P2 after allocation using the direct method?
Service Cost Allocation Harley Corp. has two service departments, (Admin Support Dept. & It Support Dept.) and two producing departments (AgencyLine and BancAssure). Provided below are the relevant data: Service Departments Operating Departments Admin Agency Line BancAssure Direct Costs P150,000 P300,000 P5,000,000 P6,000,000 Services by Admin Support 40% 40% 20% Services by IT Support 20% 70% 10% Requirements Prepare a 3 different complete service cost allocation report with details using the following methods: 1. Direct Method IT Services
Service Cost Allocation Harley Corp. has two service departments, (Admin Support Dept. & It Support Dept.) and two producing departments (AgencyLine and BancAssure). Provided below are the relevant data: Service Departments Operating Departments Admin IT Services AgencyLine BancAssure Direct Costs P150,000 P300,000 P5,000,000 P6,000,000 Services by Admin Support 40% 40% 20% Services by IT Support 20% 70% 10% Requirements Prepare a complete service cost allocation report with details using the following method: Reciprocal Method
Service Cost Allocation Harley Corp. has two service departments, (Admin Support Dept. & It Support Dept.) and two producing departments (AgencyLine and BancAssure). Provided below are the relevant data: Service Departments Operating Departments Admin IT Services AgencyLine BancAssure Direct Costs P150,000 P300,000 P5,000,000 P6,000,000 Services by Admin Support 40% 40% 20% Services by IT Support 20% 70% 10% Requirements Prepare a complete service cost allocation report with details using the following method: Step-Down Method (Admin Support Costs are allocated first)
The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 40,000 0 % 40 % 30 % 30 % Service 2 (S2) 30,000 25 0 45 30 Production 1 (P1) 200,000 Production 2 (P2) 250,000 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first?
The following information is departmental cost allocation with two service departments and two production departments. Department Cost Percentage Service Provided to S1 S2 P1 P2 Service 1 (S1) $ 32,000 0% 25% 30% 45% Service 2 (S2) 23,000 20 0 20 60 Production 1 (P1) 130,000 Production 2 (P2) 180,000 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first? The following information relates to a joint production process for three products, with a total joint production cost of $165,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $ 181,500 320 2 99,000 960 3 49,500 1,920 $ 330,000 3,200 What percentage of joint cost is allocated to each of the three products using the sales value at split-off method? Do not give answer in image
II. AJA Company has two service departments (A and B) and two producing departments (X and Y). Data provided are as follows: Service Departments Operating Departments Y A В Direct Costs P150 P300 P5,000 P6,000 Services performed by Dept. A Services performed by Dept. B 40% 40% 20% 20% 70% 10% 1) If the company is using the direct method to allocate service department costs, the service department cost allocated to Department Y is: 2) Using the information in number 1, what is the total cost for Department X? 3) If the company is using the step-down to allocate service department costs and Department A costs are allocated first, the service department cost allocated to Department Y is? 4) Using the information in number 3, the total cost for Department X is? 5) If the reciprocal method is used, the service department cos allocated to department Y is?
Allocating Service Department Costs: Allocation Basis Alternatives Weld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1. Estimated directed overhead costs per month are as follows: P1 $450,000 P2 750,000 $1 273,000 Other data follow: Numbers of employees Production capacity (units) Space occupied (square feet) Five-year average of $1's service output used P1 P2 150 50 100,000 60,000 5,000 15,000 65% 35% For each of the following allocation bases, determine the total estimated overhead cost for P1 and P2 after allocating 51 cost to the producing departments. 1. Based on number of employees $ P1 P2 $ 2. Production capacity in units 3. Space occupied 4. Five-year average of $1 service used 627,450✔ 845,550✔ 5. Estimated direct overhead costs