Why does support department cost allocation matter to service businesses (such as colleges and universities)? Please...
- Why does support department cost allocation matter to service businesses (such as colleges and universities)? Please explain the importance. Also, identify three businesses, companies, or non-profit organizations that you think would use support department cost allocation. Name the company and their corresponding support departments.
Homework Answers
Support departments play a very important role when it comes to service businesses than in the case of manufacturing businesses.
The support department provides the services which are most critical for the functioning of the service business.
The expenditure portion incurred through the support departments is significant in the case of a service business.
The allocation of such costs incurred by the support department is very crucial for producing accurate management accounting reports.
Examples for various organizations allocate service department costs:
| Business | Support departments | |
| 1 | Harward University | Accounting |
| Human resource | ||
| Legal | ||
| 2 | William H. Gates Foundation | Maintenance |
| Engineering | ||
| Research and development | ||
| 3 | Alphabet Inc. | Hardware maintenance |
| Payroll | ||
| Security |
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Why does support department cost allocation matter to service
businesses (such as colleges and universities)? Please...
Why does support department cost allocation matter to service businesses (such as colleges and universities)? Please...
Why does support department cost allocation matter to service businesses (such as colleges and universities)? Please explain the importance. Also, identify three businesses, companies, or non-profit organizations that you think would use support department cost allocation. Name the company and their corresponding support departments.
Direct method of support department cost allocation: bank aewide Bank has two support departments: the Human...
Direct method of support department cost allocation: bank aewide Bank has two support departments: the Human Resources Department and the Computing Department. The bank also has two departments that service customers directly: the (LOO] Computing Deposits Department and the Loans Department. The usage of the two support departments output in the year just ended was as follows: Provider of service Computing 20% Human Resources User of service Human Resources Computing Deposits Loans 2096 50% 30% 60% 20% The budgeted costs...
Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting...
Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine hours 800 2,000 6,800 11,200 Asset value $2,000...
Why is the direct method of support department cost allocation less accurate than the sequential and...
Why is the direct method of support department cost allocation less accurate than the sequential and reciprocal services methods? How does management determine the order in which support department costs are allocated under the sequential method?
Support department cost allocation-reciprocal services method Davis Snowflake Coproduces Christmas stockings in its Cutting and Sewing...
Support department cost allocation-reciprocal services method Davis Snowflake Coproduces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine Hours 800 2,000 7,200 10,800 Asset value $2.000 $1,470 $1,500...
Please show full details step by steps thanks Support department cost allocation-sequential method Crystal Scarves &...
Please show full details step by steps
thanks
Support department cost allocation-sequential method Crystal Scarves & Co. produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following table: Department Total Cost Number of Employees Machine Hours Square Feet Maintenance Department $ 2,300 800 Security Department 3,000 600 Cutting...
cost allocation
Vines Company is a manufacturer of women’s and men’s swimsuits. The company uses a dual-ratesystem to allocate support costs. Last year’s support departments’ fixed and variable costs are asfollows:AccountingHumanResources Janitorial TotalVariable costs $18,420 $22,104 $60,360 $100,884Fixed costs $55,260 $100,696 $60,360 $216,316Total cost $73,680 $122,800 $120,720 $317,200Allocation base amounts for all the departments are as follows:AccountingHumanResources Janitorial Women’s Men’s TotalEmployees 2 2 4 10 6 24Time spent for accounting 15% 10% 20% 30% 25% 100%Time spent cleaning 5% 10% 15% 30%...
1. Support Department Cost Allocation—Direct Method Christmas Timber, Inc., produces Christmas trees. The trees are produced...
1. Support Department Cost Allocation—Direct Method Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout the production process by non-production employees. Maintenance and janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 6 and 54 trees, respectively, in them at 1 time. The company...
eBook Show Me How Calculator Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces...
eBook Show Me How Calculator Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments c orare stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on value Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine hours 800 2,000 7,600 10,400 Asset value...
Please also show how you got each number! Thanks Problem 11-54 Cost Allocation: Step and Reciprocal...
Please also show how you got
each number! Thanks
Problem 11-54 Cost Allocation: Step and Reciprocal Methods (LO 11-3, 4) Great Eastern Credit Union (GECU) has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded: Using Department Maintenance Processing Administration 50% Supplying Department Processing Administration Maintenance Direct cost 0 Branches 10% 60% 20% $4,400,000 Electronic 40% 40% 50% $1,700,000 15% $84,000 15% $540,000...
Direct method of support department cost allocation: bank aewide Bank has two support departments: the Human Resources Department and the Computing Department. The bank also has two departments that service customers directly: the (LOO] Computing Deposits Department and the Loans Department. The usage of the two support departments output in the year just ended was as follows: Provider of service Computing 20% Human Resources User of service Human Resources Computing Deposits Loans 2096 50% 30% 60% 20% The budgeted costs...
Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine hours 800 2,000 6,800 11,200 Asset value $2,000...
Support department cost allocation-reciprocal services method Davis Snowflake Coproduces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine Hours 800 2,000 7,200 10,800 Asset value $2.000 $1,470 $1,500...
Please show full details step by steps
thanks
Support department cost allocation-sequential method Crystal Scarves & Co. produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following table: Department Total Cost Number of Employees Machine Hours Square Feet Maintenance Department $ 2,300 800 Security Department 3,000 600 Cutting...
eBook Show Me How Calculator Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments c orare stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on value Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine hours 800 2,000 7,600 10,400 Asset value...
Please also show how you got
each number! Thanks
Problem 11-54 Cost Allocation: Step and Reciprocal Methods (LO 11-3, 4) Great Eastern Credit Union (GECU) has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded: Using Department Maintenance Processing Administration 50% Supplying Department Processing Administration Maintenance Direct cost 0 Branches 10% 60% 20% $4,400,000 Electronic 40% 40% 50% $1,700,000 15% $84,000 15% $540,000...
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