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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 IT a. The order of allocation starts with IT. b. The order of allocation starts with HR. 0 16 $ 154,000 HR 1,500 0 $ 264,600 Publishing 1,500 24 $430,000 Required: Use the step method to allocate the service costs, using the following: Binding 4,500 40 $ 390,000

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 IT a. The order of allocation starts with IT. b. The order of allocation starts with HR. 0 16 $ 154,000 HR 1,500 0 $ 264,600 Publishing 1,500 24 $430,000 Required: Use the step method to allocate the service costs, using the following: Binding 4,500 40 $ 390,000

Principles of Cost Accounting
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 a. The order of allocation starts with IT. b. The order of allocation starts with HR. Required A Required: Use the step method to allocate the service costs, using the following: Required B From: Service department costs HR Total costs 0 16 $ 154,000 Complete this question by entering your answers in the tabs below. $ IT $ HR IT 154,000 (154,000) 1,500 0 $ 264,600 Use the step method to allocate the service costs, using the following: The order of allocation starts with IT. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. 0 X Answer is complete but not entirely correct. Publishing 1,500 24 $ 430,000 $ Cost Allocation To: HR $ 264,600 30,800 400) 0 Binding 4,500 40 $ 390,000 Binding Publishing $430,000 $ 390,000 $ 30,800 $ 110,775 92,400 184,625 $ 571,575 $ 667,025
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 a. The order of allocation starts with IT. b. The order of allocation starts with HR. Required A Required: Use the step method to allocate the service costs, using the following: Required B From: Service department costs HR Total costs 0 16 $ 154,000 Complete this question by entering your answers in the tabs below. $ IT $ HR IT 154,000 (154,000) 1,500 0 $ 264,600 Use the step method to allocate the service costs, using the following: The order of allocation starts with IT. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. 0 X Answer is complete but not entirely correct. Publishing 1,500 24 $ 430,000 $ Cost Allocation To: HR $ 264,600 30,800 400) 0 Binding 4,500 40 $ 390,000 Binding Publishing $430,000 $ 390,000 $ 30,800 $ 110,775 92,400 184,625 $ 571,575 $ 667,025
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