Exercise 11-27 (Algo) Cost Allocation: Direct Method (LO 11-1) Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments Publishing and Binding Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department The following data appear in the company records for the current period IT tickets Employees Department direct costs IT 0 30 $ 154,000 HR 2,000 D $ 247,500 Publishing 2,000 $430,000 Binding 3,000 54 $390,000 Required: Use the direct method to allocate these service department costs to the operating departments Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round "Publishin-
Exercise 11-27 (Algo) Cost Allocation: Direct Method (LO 11-1) Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments Publishing and Binding Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department The following data appear in the company records for the current period IT tickets Employees Department direct costs IT 0 30 $ 154,000 HR 2,000 D $ 247,500 Publishing 2,000 $430,000 Binding 3,000 54 $390,000 Required: Use the direct method to allocate these service department costs to the operating departments Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round "Publishin-
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 1CMA
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