Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Question
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…
Chapter 12 Solutions
Survey Of Accounting
Ch. 12 - 1.What is a cost object? Identify four different...Ch. 12 - Prob. 2QCh. 12 - 3.If the cost object is a manufactured product,...Ch. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - 10.Why are some manufacturing costs not directly...
Ch. 12 - Prob. 11QCh. 12 - 12.On January 31, the managers of Integra, Inc....Ch. 12 - 13.Respond to the following statement: The...Ch. 12 - Prob. 14QCh. 12 - Define the term cost pool. How are cost pools...Ch. 12 - LO 4-1Exercise 4-1A Direct versus indirect costs...Ch. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Exercise 4-4APooling overhead cost Ware...Ch. 12 - Prob. 5ECh. 12 - Exercise 4-5A Allocating overhead cost among...Ch. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Exercise 4-6AAllocating overhead costs among...Ch. 12 - Exercise 4-9AAllocating to solve a timing problem...Ch. 12 - Prob. 11ECh. 12 - Exercise 4-11AHow the allocation of fixed cost...Ch. 12 - Prob. 13ECh. 12 - Problem 4-17A Cost accumulation and allocation...Ch. 12 - Problem 4-18A Selecting an appropriate cost driver...Ch. 12 - Problem 4-19A Cost allocation in a service...Ch. 12 - Prob. 17PCh. 12 - Problem 4-21A Allocation to accomplish smoothing...Ch. 12 - Problem 4-22A Allocating indirect costs between...Ch. 12 - Prob. 20PCh. 12 - Prob. 1ATCCh. 12 - Prob. 2ATCCh. 12 - ATC 4-3 Research Assignment Using real-world data...Ch. 12 - Prob. 4ATCCh. 12 - Prob. 5ATC
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