the company records for the current period: IT 0 21 $ 155,000 HR 1,500 0 $ 247,500 Publishing 1,500 29 $430,000 costs to the Binding 4,500 45 $ 390,000

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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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
S
0
21
$ 155,000 $ 247,500
HR
1,500
0
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.
0 S
HR
Publishing.
1,500
29
$ 430,000
Publishing
0 $
Binding
4,500
45
$ 390,000
0.00 $
Binding
0.00
Transcribed Image Text: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 S 0 21 $ 155,000 $ 247,500 HR 1,500 0 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. 0 S HR Publishing. 1,500 29 $ 430,000 Publishing 0 $ Binding 4,500 45 $ 390,000 0.00 $ Binding 0.00
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