Senen corporation has two service departments (maintenance and security) and two producing departments (assembly and finising). The following are the percentage usage of each department use of maintenance dept use of security dept Maintenance 5 % Security 10 % Assembly 60 % 40 % Finishing 30 % 55 % The maintenance department cost is 900,000 and security department cost is 500,000 Compute the service cost allocated tosecurity department using reciprocal method

Senen corporation has two service departments (maintenance and security) and two producing departments (assembly and finising). The following are the percentage usage of each department use of maintenance dept use of security dept Maintenance 5 % Security 10 % Assembly 60 % 40 % Finishing 30 % 55 % The maintenance department cost is 900,000 and security department cost is 500,000 Compute the service cost allocated tosecurity department using reciprocal method

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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Assume a company provided the following information: Departmental costs Number of employees Square feet of space occupied Multiple Choice If the company (1) uses the direct method to allocate service department costs to operating departments, (2) allocates Cafeteria costs based on the number of employees, and (3) allocates Janitorial costs based on square feet of space of occupied, then the cost allocated from the Cafeteria Department to the Lab Department is closest to: C $58,338. $63,467. $76,800. Service Departments Operating Departments Cafeteria Janitorial Lab Tech $232,000 $950,000 32 68 $240,000 $140,000 20 2,000 11,000 9,000 $116,800. 10 3,000
Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Cafeteria Services has costs of $195,000 and Maintenance has costs of $255,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? Employees are: Cafeteria Services= 3 Maintenance=5 Assembly Department =8 Packaging Department =7 Provide correct answer.
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Solomon Information Services, Incorporated, has two service departments: human resources and billing. Solomon's operating departments, organized according to the special Industry each department serves, are health care, retall, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Number of employees Annual cost* Annual revenue Req A1 Department Human Resources Billing Health Care Retail Req A2 Legal Services Total 20 $ 900,000 Complete this question by entering your answers in the tabs below. Allocation Rate Req B1 *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Solomon adopts the step method. The company uses the number of employees as the base for allocating human resources department costs and department…
Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Cafeteria Services has costs of $195,000 and Maintenance has costs of $255,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are: Cafeteria Services 3 Maintenance 5 Assembly Department 8 Packaging Department 7
Senen corporation has two service departments (maintenance and security) and two producing departments (assembly and finising). The following are the percentage usage of each department use of maintenance dept use of security dept Maintenance 5 % Security 10 % Assembly 60 % 40 % Finishing 30 % 55 % The maintenance department cost is 900,000 and security department cost is 500,000 Compute the service cost allocated to maintenance department using step method
Sierra Company has two operating departments: Mixing and Bottling. Mixing occuples 26,460 square feet. Bottling occupies 17,640 square feet. Maintenance costs of $226,000 are allocated to operating departments based on square feet occupied. Determine the maintenance costs allocated to each operating department. Department Mixing Bottling Total Square Feet 0 Percent of Total % % 0.00 % Cost Allocated $ 0
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The centralized computer technology department of Lee Company has expenses of$264,000. The department has provided a total of 2,500 hours of service for the period. TheRetail Division has used 1,125 hours of computer technology service during the period, andthe Commercial Division has used 1,375 hours of computer technology service. How mucheach division should be charged for computer technology department services?
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