Question

Budgeted Costs Number of Employees S1 $4,101,000 87 S2 3,110,000 58 S3 2,865,000 37 P1 204...

Budgeted Costs Number of Employees
S1 $4,101,000 87
S2 3,110,000 58
S3 2,865,000 37
P1 204
P2 306

Service department costs are allocated by the direct method. The number of employees is used as the allocation base for all service department costs.

Collapse question part

Allocate service department costs to production departments.

Service Service dept. Cost Allocated to
Department Costs P1 P2
S1 $4,101,000 $

$

S2 3,110,000 $

S3 2,865,000 $

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Number of employees in department P1 = 204

Number of employees in department P2 = 306

Total employees in department P1, and P2 = Number of employees in department P1 + Number of employees in department P2

= 204+306

= 510

Percentage of employees of department P1 = Number of employees in department P1 / Total employees in department P1, and P2

= 204/510

= 40%

Percentage of employees of department P2 = Number of employees in department P2 / Total employees in department P1, and P2

= 306/510

= 60%

Service Service dept. Cost Allocated to
Department Costs P1 P2
S1 $4,101,000

4,101,000 x 40% = 1,640,400

4,101,000 x 60% = 2,460,600

S2 3,110,000

3,110,000 x 40% = 1,244,000

3,110,000 x 60% = 1,866,000

S3 2,865,000 2,865,000 x 40% = 1,146,000 2,865,000 x 60% =1,719,000

Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.

Thanks

Add a comment
Know the answer?
Add Answer to:
Budgeted Costs Number of Employees S1 $4,101,000 87 S2 3,110,000 58 S3 2,865,000 37 P1 204...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The Ceradyne Company has three service departments, S1, S2, and S3, and two production departments, P1...

    The Ceradyne Company has three service departments, S1, S2, and S3, and two production departments, P1 and P2. The following data relate to Ceradyne’s allocation of service department costs: Budgeted Costs Number of Employees S1 $4,101,000 87 S2 3,110,000 58 S3 2,865,000 37 P1 204 P2 306 Service department costs are allocated by the direct method. The number of employees is used as the allocation base for all service department costs. Calculate the total service department cost allocated to each...

  • The DuffyDog Company has three service departments, S1, S2, and S3, and two production departments, P1...

    The DuffyDog Company has three service departments, S1, S2, and S3, and two production departments, P1 and P2. The following data relate to DuffyDog’s allocation of service department costs: Budgeted Costs Number of Employees S1 $4,637,000 89 S2 3,262,000 58 S3 2,618,000 40 P1 196 P2 294 Service department costs are allocated by the direct method. The number of employees is used as the allocation base for all service department costs. (a) Your answer is correct. Allocate service department costs...

  • The Springfield Company has three service departments, S1, S2, and S3, and two production departments, P1...

    The Springfield Company has three service departments, S1, S2, and S3, and two production departments, P1 and P2. The following data relate to Springfield’s allocation of service department costs: Budgeted Costs Number of Employees S1 $4,588,000 92 S2 2,834,000 64 S3 2,760,000 41 P1 196 P2 294 Service department costs are allocated by the direct method. The number of employees is used as the allocation base for all service department costs. (a) Allocate service department costs to production departments. Service...

  • Carolina Stoneware Company manufactures pottery in two production departments, P1 and P2. The production departments receive...

    Carolina Stoneware Company manufactures pottery in two production departments, P1 and P2. The production departments receive services from four support departments, S1, S2, S3 and S4, which also provide some services to each other. The costs of operating the support departments for last year are as follows: Dept. S1 Dept. S2 Dept. S3 Dept. S4 Dept. Costs $12,000 15,000 10,000 25,000 The percentages of service provided by the support departments to other departments are: SA p1 From S1 10% S3...

  • Medusa Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the...

    Medusa Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the molding (P1), finishing (P2), and packaging (P3) departments. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet which the production department occupies within the factory. Information about the departments is presented below: Number of Number of Square Department Costs Employees Feet Occupied Payroll (S1) $136,000 2...

  • Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2....

    Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: S1 S2 P1 0.70 0.10 0.20 0.20 0.30 0.50 Department Direct costs $ 60,000 $100,000 $160,000 $140,000 P2 Under the direct method of cost allocation, the amount of S1 costs allocated to S2 would be:...

  • Evergreen Company has two support departments (S1 and S2) and two producing departments (P1 and P2)....

    Evergreen Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Department S1 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet. Data on direct department costs, number of employees, and space occupied are as follows: S1 S2 P1 P2 Direct dept. costs $7,500 $11,000 $27,500 $30,000 Number of employees 10 5 20 25 Space occupied (sq. ft.)...

  • 1. Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1...

    1. Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1 and P2). The following data relate to Motorcade's allocation of service department costs: Round to two decimal places. Budgeted Costs Nbr of Employees S1 $3,040,000 75 S2 2,180,000 50 S3 1,000,000 25 P1 150 P2 225 Service department costs are allocated by the direct method. The number of employees is used as the allocation base for all service department costs Calculate the total service...

  • RT Renovations is organized with two service departments (S1 and S2) and two production departments (P1...

    RT Renovations is organized with two service departments (S1 and S2) and two production departments (P1 and P2). The company uses the step method to allocate service department costs, allocating from S1 to S2, P1, and P2 first. The cost accountant tells you that in November, $105,000 was allocated from S2 to P1 (including any cost allocated from S1 to S2). She also tells you that $55,000 was allocated from S1 to S2 in November. P1 used 15 percent of...

  • Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and 52....

    Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and 52. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: S1 S2 P1 P2 0.70 0.10 0.20 0.20 0.30 0.50 Department Direct costs $ 60, 000 S2 $100,000 $160,000 P2 $140,000 S1 P1 Under the step method of allocation, the total amount of service costs...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT