Interdepartment Services: Direct MethodWilhelm Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are service departments (S1, S2, and S3). All costs of the service departments are allocated to the producing departments. The following table shows the distribution of services from the service departments.Services provided Services Provided tofromS1 S2 S3 P1 P2-- 5% 25% 50% 20%5 45 4020 60S1S2S3The direct operating costs of the service departments are as follows:S1 $ 98,000S2 187,000S3 36,000Total costs10%Using the step method, prepare a schedule for Wilhelm Manufacturing Company allocating the service department costs to the producing departments. (Round calculations to the nearest dollar. Do not round until your final answers.)Service DepartmentsProducing DepartmentsP1S20 $P2158,260 x162,740 x $Check15 5S1S30

Under the step method for overhead cost allocation the costs from one service department are…

Interdepartment Services: Direct Method Wilhelm Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are service departments (51, 52, and 53). All costs of the service departments are allocated to the producing departments. The following table shows the distribution of services from the service departments. Services provided Services Provided to from 51 52 53 P1 P2 |SW|25% 50% 20% 10% 5 45 40 15 5 20 60 The direct operating costs of the service departments are as follows: $1$ 98,000 $2 187,000 53 36,000 Using the step method, prepare a schedule for Wilhelm Manufacturing Company allocating the service department costs to the producing departments (Round calculations to the nearest dollar. Do not round until your final answers) Service Departments 52 51 Total costs $ Check 53 ous OUS 0 Producing Departments P1 P2 162,740 x 158,260 $

Interdepartment Services: Direct Method Wilhelm Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are service departments (51, 52, and 53). All costs of the service departments are allocated to the producing departments. The following table shows the distribution of services from the service departments. Services provided Services Provided to from 51 52 53 P1 P2 |SW|25% 50% 20% 10% 5 45 40 15 5 20 60 The direct operating costs of the service departments are as follows: $1$ 98,000 $2 187,000 53 36,000 Using the step method, prepare a schedule for Wilhelm Manufacturing Company allocating the service department costs to the producing departments (Round calculations to the nearest dollar. Do not round until your final answers) Service Departments 52 51 Total costs $ Check 53 ous OUS 0 Producing Departments P1 P2 162,740 x 158,260 $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Product Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Blinks Dinks Number of Direct Labor Hours Machine Hours Units Per Unit Per Unit 990 2,086 4 Oa. $41.28 Ob. $358.83 Oc. $13.04 Od. $51.60 3 gnmentSession Locator=&inprogress=false 8 5 凸☆ All of the machine hours take place in the Fabrication department, which has an estimated overhead of $86,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $89,700. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Dinks is Previous B Next
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Support department cost allocation Hooligan Adventure Supply produces and sells various outdoor equipment. The Molding and Assembly production departments are supported by the Personnel and Maintenance departments. Personnel costs are allocated to the production departments based on the number of employees, and Maintenance costs are allocated based on number of service calls. Information about these departments is detailed in the following table: Line Item Description PersonnelDepartment MaintenanceDepartment MoldingDepartment AssemblyDepartment Number of employees 28 10 41 49 Number of service calls 57 41 168 112 Department cost $15,000 $11,400 $72,000 $69,000 1. Which of the following statements matches the sequential method of cost allocations?a. Support departments are often allocated in order from lowest to the highest cost with preference given to the departments that serve few support…
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sequential method please Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Number of employees Square footage Human Resources General Factory Support Departments Human Resources $160,000 1,200 Direct costs Allocate: General Factory $330,000 General Factory Human Resources Total after allocation 40 Human Resources Producing Departments Fabricating Assembly The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: $114,400 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "0".…
Required information SB (Static) The following information is... [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 Service 1 (S1) Service 2 (52) Production 1 (P1) Production 2 (P2) P1 P2 Cost $ 30,000 20,000 100,000 150,000 Total Cost Allocated S1 0% 20 P2 35% 20 60 Brief Exercise 7-14 (Static) If the cost in P1 is changed from... [LO 7-3] 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 $100,000 to $120,000? 52 P1 30% 35% 0