Roque Press has the service departments (administration and an and two operating departments (college texts and professional publications). Following are the direct costs and allocation bases for each of these areas: Department Administration Editorial College texts Professional publications Direct Costs P 450,000 350,000 2,250,000 950,000 a. P2,250,000 b. P2,702,566 c. P2,493,964 d. P2,458,602 ALLOCATION BASES Pesos of Assets Employed P 620,000 144,000 1,200,000 1,056,000 Number of Employees 10 8555 35 Company management has decided to allocate administration and editorial costs using the pesos of assets employed and number of employees, respectively. Using the reciprocal (algebraic) method: 29. What is the total operating cost after allocation of college textbooks?

Roque Press has the service departments (administration and an and two operating departments (college texts and professional publications). Following are the direct costs and allocation bases for each of these areas: Department Administration Editorial College texts Professional publications Direct Costs P 450,000 350,000 2,250,000 950,000 a. P2,250,000 b. P2,702,566 c. P2,493,964 d. P2,458,602 ALLOCATION BASES Pesos of Assets Employed P 620,000 144,000 1,200,000 1,056,000 Number of Employees 10 8555 35 Company management has decided to allocate administration and editorial costs using the pesos of assets employed and number of employees, respectively. Using the reciprocal (algebraic) method: 29. What is the total operating cost after allocation of college textbooks?

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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Support Department Cost Allocation—Reciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The company’s production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company’s production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $252,000. The total cost of the Cafeteria Department is $778,000. The number of employees and the square footage in each department are as follows: Employees Square Feet Security Department 10 540 Cafeteria Department 26 2,400 Laser Department 40 4,800 Forming Department 50 800 Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to…
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Support Department Cost Allocation—Reciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The company’s production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company’s production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $248,000. The total cost of the Cafeteria Department is $333,000. The number of employees and the square footage in each department are as follows: Employees Square Feet Security Department 10 570 Cafeteria Department 28 2,400 Laser Department 40 2,400 Forming Department 50 3,200 Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and…
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