Survey Of Accounting
Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 12, Problem 5ATC

a)

To determine

The person to be charged for the cost of assisting the sign language.

b)

To determine

Discuss the way the allocation can be utilized to help the fairness of distributing service costs to the people with disabilities and the 2 ways to treat the cost of providing the sign language of $240 to improve the fairness.

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Exercise 11-32 (Algo) Cost Allocation: Reciprocal Method (LO 11-1) 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 cach IT request) in each department and HR casts on the basis of employees in each department The following data appear in the company records for the current period: IT HR IT tickets 1,555 Publishing 2,488 Binding 2,177 Employees 18 ° Department direct costs $ 154,488 $ 248,490 27 $432,200 45 $395,500 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. From: Service department coas IT HR Total Cost Allocation To: IT HR Publishing Binding
Exercise 11-32 (Algo) Cost Allocation: Reciprocal Method (LO 11-1) Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating epartments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT equest) 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 From: Service department costs IT HR Total $ IT 0 22 $ 153,200 IT Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. HR 1,540 0 $ 248,220 0$ Publishing 2,464 33 $ 431,600 Cost Allocation To: HR Publishing 05 Binding 0 $ 2,156 55 $394,000 Binding 0
O -34 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 B IT HR 1,800 0 16 $ 157,000 $ 268,000 Required: Use the step method to allocate the service costs, using the following: From: Service department costs HR IT Total costs 0 Complete this question by entering your answers in the tabs below. HR Publishing 1,800 24 $430,000 Required A Use the step method to allocate the service costs, using the following: The order of allocation starts with HR. Note: Amounts to be deducted should be indicated by…

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Survey Of Accounting

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