rr Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (Westand East). The usage data for each of the service departments for the previous period followAccountingITAccountingHRITOX10%HR allocationTotal costs allocatedService department costsIT alocationAccounting allocation10%HR West Fast20%40%40%0560%20%The direct costs of the service departments in the previous period were $90,500 for IT, $114,000 for Accounting, and $150,000 for HR.40%60%Required:Use the direct method to allocate the service department costs to the production departmentsNote: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.IT Accounting HRWestEast

According to each department's portion of the allocation base, the direct method divides the costs…

Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow 17 Accounting HR 11 Ox 10% HR allocation Total costs allocated Service department costs IT alocation Accounting alocation Accounting OK 10% HR 20% Of 40% 405 60% 201 The direct costs of the service departments in the previous period were $90,500 for IT, $114,000 for Accounting, and $150,000 for HR. Required: Use the direct method to allocate the service department costs to the production departments Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. 40% GOX Accounting HR West East

Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow 17 Accounting HR 11 Ox 10% HR allocation Total costs allocated Service department costs IT alocation Accounting alocation Accounting OK 10% HR 20% Of 40% 405 60% 201 The direct costs of the service departments in the previous period were $90,500 for IT, $114,000 for Accounting, and $150,000 for HR. Required: Use the direct method to allocate the service department costs to the production departments Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. 40% GOX Accounting HR West East

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

4 Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR IT -- Service department costs IT allocation Accounting allocation HR allocation Total costs allocated 0% 10% Accounting HR 0% 20% 0% -- 10% $ -- The direct costs of the service departments in the previous period were $91,000 for IT, $116,000 for Accounting, and $155,000 for HR. IT West 40% 40% 60% Required: Use the direct method to allocate the service department costs to the production departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. East 40% 60% 20% Accounting 0 $ 0 $ Check my work HR 0 $ West 0 $ East 0
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repairs HR IT Repairs HR 0% Service department costs Repairs allocation HR allocation IT allocation Total costs allocated 10% 0% - 10% IT 0% 20% The direct costs of the service departments in the previous period were $92,000 for Repairs, $111,600 for HR, and $207,000 for IT. Required: Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) M1 40% 35% 20% Repairs M2 60% 35% 70% HR IT M1 M2
Western Services has three service departments: Information Systems (IS), Personnel, and Administration. There are two operating departments: Residential and Commercial. A summary of costs and other data for each department prior to allocation of service department costs for the latest period follows: Department Information Systems (IS) Personnel Administration IS 170 115 3,900 Number of IS service tickets Number of employees Square footage occupied The costs of the service departments and the allocation basis for each department follow. Direct Cost $ 33,000 40,000 36,700 Personnel 200 120 8,000 Administration Residential Commercial 155 1,410 107 138 3,800 16,100 Allocation Base IS service tickets Employees Square footage occupied. 940 162 69,500 Required: a. Assume that the company allocates service department costs to production departments using the direct method. What amount of Information Systems (IS) Department costs will be allocated to the Commercial Department? b. Assume the…
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 Service department costs IT allocation HR allocation Total costs allocated IT IT 0 33 $ 157,000 HR HR 1,500 0 $ 247,500 Publishing 1,500 41 $ 430,000 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 "Publishing" and "Binding" answers to 2 decimal places. Binding Publishing 4,500 57 $ 390,000 AL Binding
Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT IT Accounting 0% HR West East 20% 40% 40% Accounting 0% 0% 40% 60% HR 10% 10% 60% 20% The direct costs of the service departments In the previous period were $91,750 for IT, $119,000 for Accounting, and $162,500 for HR. Required: Use the step method to allocate the service department costs to the two production departments. Allocate HR costs first, followed by IT, and then Accounting. Note: Amounts to be deducted should be Indicated by a minus sign. Service department costs HR allocation IT allocation Accounting allocation Total costs allocated IT Accounting HR West East 91,750 S 119,000 $ 162,500 16,250 (162,500) 97,500 32,500 0 0 S 108,000 S 119,000 S 0 $ 97,500 S 32,500
Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR IT Accounting 0% HR West East 20% 40% 40% 0% 10% 0% 40% 60% 10% 60% 20% The direct costs of the service departments in the previous period were $86,750 for IT, $99,000 for Accounting, and $112,500 for HR. Required: Use the reciprocal method to allocate the service department costs to the production departments. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Allocation IT Accounting HR West East Service department costs $ 86,750 $ 99,000 $ 112,500 $ 0 $ 0 IT allocation Accounting allocation HR allocation Total costs allocated $ 86,750 $ 99,000 $ 112,500 $ 0 $ 0
Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR), Legal, and Testing. In the most recent period, the following costs and service department usage ratios were recorded: Supplying Department Human Resources Legal Testing Direct cost From: Human Resources Legal Testing Total Human Resources Costs 10% 10% $ 264,500 $ Allocated to: Domestic Legal 0 $ 15% 0 0 $ 190,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. Note: Do not round intermediate calculations. Global Using Department Testing 0 10% 0 0 $ 90,000 Domestic 50% 60% 45% $ 541,000 Global 25% 30% 45% $ 490,000
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repairs HR IT Repairs HR 10% 0% HR allocation IT allocation Total costs allocated Service department costs Repairs allocation 0% 10% IT 0% 20% M1 The direct costs of the service departments in the previous period were $40,000 for Repairs, $59,600 for HR, and $90,000 for IT. Required: Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Repairs 40% 35% 20% M2 60% 35% 70% HR IT M1 M2
Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR IT Accounting 0% HR West East 20% 40% 40% 0% 10% 0% 40% 60% 10% 60% 20% The direct costs of the service departments in the previous period were $90,250 for IT, $113,000 for Accounting, and $147,500 for HR. Required: Use the step method to allocate the service department costs to the two production departments. Allocate HR costs first, followed by IT, and then Accounting. Note: Amounts to be deducted should be indicated by a minus sign. Service department costs HR allocation IT allocation Accounting allocation Total costs allocated IT Accounting HR West East $ 0 $ 0 $ 0 $ 0 $ 0
Accounting Selecting an Allocation Base for Service Costs. Winstead, Inc., is looking for an appropriate allocation base to allocate personnel costs totaling $5,000,000. Service department costs are allocated to three production departments: Assembly, Sanding, and Finishing. Management is considering two allocation bases. Possible Allocation Base Assembly Sanding Finishing Number of employees 30 20 50 Square feet of space occupied 25,000 15,000 10,000 Required: Calculate the amount of personnel department costs allocated to production departments using each allocation base. Which allocation base do you think is most reasonable? Why?
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. Supplying Department Engineering Administration Maintenance Direct cost Engineering Administration Maintenance Using Department Engineering Administration Maintenance Fabrication Total 0 10% 0 $30,000 50% 0 30% Costs $213,300 Allocated to: Fabrication 0 20% 0 $40,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.) Assembly 10% 50% 15% $200,000 Assembly 40% 20% 55% $50,000
Comprehensive support department allocationsManagement at C. Pier Press has decided to allocate costs of the paper’s two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employed Administration $1,094,100 14 $541,940 Human resources 689,780 11 408,380 Advertising 1,340,920 17 1,067,360 Circulation 1,893,640 36 2,618,420 Totals $5,018,440 78 $4,636,100 c. Assuming that the benefits-provided ranking is the order shown in the table, use the step method to allocate the support department costs to the revenue-generating departments.Note: Round your final answers only to the nearest whole dollar. Amount…