Haresh Activity and selected costs for three production departments (Training, Independent, and Commercial) and two servicedepartments (Accounting and Facilities) at DuBay Films for the past month follow:Supplying DepartmentAccountingFacilitiesDirect costRequired:Accounting00.20$ 250,000Facilities0.400Using DepartmentTraining0.300.20Independent0.20$ 214,500$ 390,0000.15$ 207,000Commercial0.100.45$ 293,000Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costsof Training, Independent, and Commercial after this allocation?Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your finalanswers to the nearest whole dollar amounts.From:Service department costsAccountingFacilitiesTotal allocationsDirect costsTotal costsCost Allocation To:AccountingFacilitiesTrainingIndependentCommercial

Cost allocation is the process of assigning or distributing the costs to different business units,…

Answered: Haresh | bartleby

Business

Accounting

Haresh

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 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...

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Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service departments (Accounting and Facilities) at DuBay Films for the past month follow: Supplying Department Using Department Accounting Facilities Training Independent Commercial Accounting 0 0.50 0.20 0.10 0.20 Facilities 0.20 0 0.20 0.20 0.40 Direct cost $ 110,000 $ 144,500 $ 250,000 $ 193,000 $ 279,000 Required: Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.
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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?
The estimated departmental manufacturing for producing departmenta A and Band the estimated costs of service departments C, D, and E (befor any service department allocations) are: Producing Department Service Department P120,000 180,000 P40,000 B D 40,000 E 20,000 The interdependence of the departments is as follows: Services Provided by Department D E Producing A Producing B Service C Service D Service E 30% 40% 50% 40 30 20 20 30 Marketing General office 20 10 100% 100% 100% Compute the final amount of estimated overhead of Service E after reciprocal transfer costs have been calculated algebraically. After computing the total factory overhead of each producing department and what amount of Department E cost is assigned to Marketing Department?
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?