University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing andDeveloping). Management has decided to allocate maintenance costs on the basis of machine hours in each department andpersonnel costs on the basis of labor-hours worked by the employees in each.The following data appear in the company records for the current period:Maintenance Pernonnel Printing Developing1,400Machine-hours1,4009004, 200Labor-hourDepartment direct costs90062, e003,100$11, 700$12, 800$14, 500Required:Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should beindicated by a minus sign. Do not round intermediate calculations.)Maintenance Personnet Printing DevelopingService department costsMaintenance allocationPersonnel allocationTotal costs allocated

Under the direct method allocation, cost incurred in service departments will be allocated directly…

University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Machine-hours Labor-hour# Departnent direct costa Haintenance Pernonnel Printing Developing 4,200 3,100 $11, 700 1,400 1,400 900 900 $2, e00 $12, 800 $14, s00 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculetions.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation Personnel allocation

University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Machine-hours Labor-hour# Departnent direct costa Haintenance Pernonnel Printing Developing 4,200 3,100 $11, 700 1,400 1,400 900 900 $2, e00 $12, 800 $14, s00 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculetions.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation Personnel allocation

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 16P: Rockford Company has four departmental accounts: Building Maintenance, General Factory Overhead,...

See similar textbooks

Similar questions

A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
Thayne Company has 30 clerks that work in its Accounts Payable Department. A study revealed the following activities and the relative time demanded by each activity: Required: Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity. For non-value-added activities, indicate why they are non-value-added.
Rockford Company has four departmental accounts: Building Maintenance, General Factory Overhead, Machining, and Assembly. The direct labor hour method is used to apply factory overhead to the jobs being worked on in Machining and Assembly. The company expects each production department to use 30,000 direct labor hours during the year. The estimated overhead rates for the year include the following: During the year, both Machining and Assembly used 28,000 direct labor hours. Factory overhead costs incurred during the year follow: In determining application rates at the beginning of the year, cost allocations were made as follows, using the sequential distribution method: Building Maintenance to: General Factory Overhead, 10%; Machining, 50%; Assembly, 40%. General factory overhead was distributed according to direct labor hours. Required: Determine the under- or overapplied overhead for each production department. (Hint: First you must distribute the service department costs.)
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Printing 1,300 Developing 3,900 3,100 $11,600 Personnel Machine-hours 1,300 006 $15,200 Labor-hours 900 Department direct costs $3,600 $13,600 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation Personnel allocation Total costs allocated 0 $ 0 $
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Machine-hours Labor-hours Department direct costs Personnel 1,200 Printing 1,600 400 Deve loping 3,200 2,000 $10,500 600 $2,100 $12,000 $13,600 Required: Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance Personnel 斯 0. 2. 0. Total costs allocated %24
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Printing 1,400 900 Maintenance Developing 4,200 3,100 $11,700 Personnel Machine-hours 1,400 Labor-hours 900 Department direct costs $2,800 $12,800 $14,500 Required: Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance Personnel Total costs allocated $
University Printers has two service departments, Maintenance and Personnel, and two operating departments, Printing and Developing. Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period. Maintenance Personnel Printing Developing Machine-hours 1,000 1,000 3,000 2,000 $10,000 Labor-hours. 500 500 Department direct costs. $5,000 $12,000 $15,000 Required Use the direct method to allocate these service department costs to the operating departments.
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel Printing Developing Machine-hours — 1,800 1,800 5,400 Labor-hours 650 — 650 2,600 Department direct costs $4,000 $14,000 $15,900 $12,600 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing service dept. costs maintenance allocation personnel allocation total cost allocation
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Machine-hours Labor-hours Department direct costs Maintenance Service department costs Maintenance allocation Personnel allocation Total costs allocated 700 $4,800 Personnel 1,700 $14,800 Printing 1,700 700 $16,000 Developing 3,400 2,800 $13,100 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Machine-hours Labor-hours Department direct costs Maintenance. Service department costs Maintenance allocation Personnel allocation Total costs allocated 700 $4,800 Personnel 1,700 $14,800. Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) 5 Maintenance Personnel Printing Developing Printing Developing 1,700 3,400 700 2,800 $16,000 $13,100. 0 $ 0$ 0 $ 0
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel 2,000 Printing Developing 2,000 900 $14,200 Machine-hours 4,000 Labor-hours 900 2,100 $12,600 Department direct costa $3,600 $13,600 Required: Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) ces Maintenance Personnel Printing Developing Service department costs Maintenance Personnel Total costs allocated 이 $ 이 $
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel Developing Printing 1,400 Machine-hours 1,400 4,200 Labor-hours 800 800 3,200 Department 'direct costs $2,400 $12,400 $13,400 $10,700 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Answer is not complete. Maintenance Personnel Printing Developing Service department costs $2$ 2,400 $ 12,400 O Maintenance allocation (2,400) O 600 1,800 V Personnel allocation 2,480 9,920 Total costs allocated $ 2$ 12,400 $ 3,080 $24 11,720