Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 17, Problem 17E
Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The bank has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the two service departments’ output for the year is as follows:
The budgeted costs in the two service departments for the year are as follows:
Required: Use the direct method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments.
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Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The
bank has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the
two service departments' output for the year is as follows:
User of Service
HR
Computing
Deposit
Loan
Provider of Service
HR
Computing
15%
20%
50%
50%
30%
35%
The budgeted costs in the two service departments for the year are as follows:
HR
Computing
$158,000
238,000
Required:
Use the direct method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments.
(Do not round intermediate calculations.)
Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The
bank has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the
two service departments' output for the year is as follows:
Provider of Service
User of Service
Computing
HR
HR
15%
15%
60%
25%
ed
Computing
Deposit
Loan
55%
30%
The budgeted costs in the two service departments for the year are as follows:
HR
$499, 000
Computing
728, 500
Required:
Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan
departments. (Do not round your intermediate calculations and round final answers to the nearest dollar amount.)
Provider of Service
Deposit
Loan
Allocation of HR Department costs
373,366 O S
186,683
Allocation of Computing Department costs
410,921 X
246,552 O
Total costs allocated to each department
784.287
433.235
*Red text indicates…
Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing
Department. The bank has two other departments that directly service customers, the Deposit Department and the
Loan Department. The usage of the two service departments' output for the year is as follows:
Provider of Service
HR
0
Computing
15%
15%
0
60%
55%
25%
30%
User of Service
HR
Computing
Deposit
Loan
The budgeted costs in the two service departments for the year are as follows:
HR
Computing
Required:
$ 499,000
728,500
Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the
Deposit and Loan departments.
Note: Do not round your Intermediate calculations and round final answers to the nearest dollar amount.
Provider of Service
Allocation of HR Department costs
Allocation of Computing Department costs
Total costs allocated to each department
Deposit
Loan
Chapter 17 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Should actual or budgeted service department costs...Ch. 17 - Prob. 4RQCh. 17 - Why does dual cost allocation improve the...Ch. 17 - What potential behavioral problem can result when...Ch. 17 - Should actual or budgeted service department costs...Ch. 17 - Explain the difference between two-stage...Ch. 17 - Define the following terms: joint production...Ch. 17 - Prob. 10RQ
Ch. 17 - Describe the relative-sales-value method of joint...Ch. 17 - Define the term net realizable value, and explain...Ch. 17 - Are joint cost allocations useful? If they are,...Ch. 17 - For what purpose should the managerial accountant...Ch. 17 - Prob. 15ECh. 17 - Refer to the data given in the preceding exercise....Ch. 17 - Tuscaloosa National Bank has two service...Ch. 17 - Refer to the data given in the preceding exercise....Ch. 17 - Breakfasttime Cereal Company manufactures two...Ch. 17 - Refer to the data given in the preceding exercise....Ch. 17 - Refer to the data given in Exercise 1720....Ch. 17 - Prob. 23ECh. 17 - Prob. 24PCh. 17 - Prob. 25PCh. 17 - Celestial Artistry Company is developing...Ch. 17 - Snake River Sawmill manufactures two lumber...Ch. 17 - Travelcraft Company manufactures a complete line...Ch. 17 - Biondi Industries is a manufacturer of chemicals...Ch. 17 - Berger Company manufactures products Delta, Kappa,...Ch. 17 - Prob. 31PCh. 17 - Lafayette Company manufactures two products out of...Ch. 17 - Refer to the data given in Problem 1726 for...Ch. 17 - Prob. 34PCh. 17 - Top Quality Fruit Company, based on Oahu, grows,...Ch. 17 - Prob. 36C
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