Sandhill Company has two service departments (personnel and financial) that provide services for one another as well as for two production departments, assembly and finishing. Data for the month follow: Personnel Financial Assembly Finishing Employees 6 8 18 16 Payroll $16,200 $12,900 $29,600 $28,200 Personnel department costs were $79,700, and financial department costs were $44,300. Sandhill uses employees as the allocation base for personnel department costs and payroll costs for financial department costs Allocate support costs using the direct method. (Round percentages to 4 decimal places, e.g. 15.2574% and other answers to 0 decimalplaces, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Support DepartmentsPersonnelFinancialAssemblyAllocation BasesNumber of employeesAllocation percent%Payroll costs$2960Allocation percent%CostsDirectly assigned costs$$$PersonnelFinancialTotal Allocation Costs$2$%24%24%24 Operating DepartmentsAssemblyFinishingTotal1816%%29600$28200$%%24%24%24%24%24

Name: Sandhill Company has two service departments (personnel and financial)
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Description: Sandhill Company has two service departments (personnel and financial) that provide services for one another as well as for two production departments, assembly and finishing. Data for the month follow: Personnel Financial Assembly Finishing Employe

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Sandhill Company has two service departments (personnel and financial) that provide services for one another as well as for two production departments, assembly and finishing. Data for the month follow: Personnel Financial Assembly Finishing Employees 6 8 18 16 Payroll $16,200 $12,900 $29,600 $28,200 Personnel department costs were $79,700, and financial department costs were $44,300. Sandhill uses employees as the allocation base for personnel department costs and payroll costs for financial department costs

Sandhill Company has two service departments (personnel and financial) that provide services for one another as well as for two production departments, assembly and finishing. Data for the month follow: Personnel Financial Assembly Finishing Employees 6 8 18 16 Payroll $16,200 $12,900 $29,600 $28,200 Personnel department costs were $79,700, and financial department costs were $44,300. Sandhill uses employees as the allocation base for personnel department costs and payroll costs for financial department costs

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 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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