ZuoTi.Pro
Question

ABC Manufacturing has 2 service departments (HR and Maintenance) and 2 production (operating) departments (Assembly and...

ABC Manufacturing has 2 service departments (HR and Maintenance) and 2 production (operating) departments (Assembly and Finishing). HR costs are distributed based on number of employees. Using the information in the table below, what percentage of HR's costs should be allocated to Assembly under the Direct Method of Service Department Cost Allocation? Department # of employees HR 3 Maintenance 5 Assembly 30 Finishing 10

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Under the direct method, service provided by a service department to other service departments and to itself is ignored.

Hence, % of HR cost allocated to Assembly = Number of employees in Assembly/(Total number of employees in assembly and finishing)

= 30/(30+10)

= 75%

0 0
Add a comment
Know the answer?
Add Answer to:
ABC Manufacturing has 2 service departments (HR and Maintenance) and 2 production (operating) departments (Assembly and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • 4.   ABC Company has two service and three production departments. Building Maintenance and Factory office are...

    4.   ABC Company has two service and three production departments. Building Maintenance and Factory office are the service departments. The production departments are ASSEMBLY, Machining and Finishing. The following data have been estimated for next years operations: Direct labor hours: Asswmbly,45,000; Machining,35,000;Finishing 40,000 Floor space occupied: factory office 15%; Assembly, 35%; Machining 25%, Finishing 25% The direct charges expected to be made to the departments are as follows: Building maintenance $120,000 Factory office $171,000 Assembly $378,000 Machining $225,000 Finishing $225000...

  • Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....

    Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.) Required information [The following information applies to the questions displayed below] Caro Manufacturing has two production departments, Machining and Assembly, and two...

  • 1. ABC Company has two service and three production departments. Building Maintenance and Factory office are...

    1. ABC Company has two service and three production departments. Building Maintenance and Factory office are the service departments. The production departments are ASSEMBLY, Machining and Finishing. The following data have been estimated for next years operations: Direct labor hours: Asswmbly,45,000; Machining,35,000;Finishing 40,000 Floor space occupied: factory office 15%; Aaaembly, 35%; Machining 25%, Finshing 25% The direct charges expected to be made to the departments are as follows: Building maintenance $120,000 Factory office $171,000 Assembly $378,000 Finishing $225000 The building...

  • Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....

    Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow. Proportion of Services Used by Maintenance Cafeteria Machining Assembly Department Machining Assembly Maintenance Cafeteria Direct Costs $ 95,000 68,400 42,400 34,00 0.2 0.1 0.8 Exercise 11-28 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-2) Assume...

  • Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and...

    Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 103,000 Assembly 72,400 Maintenance 44,800 — 0.2 0.6 0.2 Cafeteria 36,000 0.6 — 0.2 0.2 Required: Compute the allocation of service department costs to producing departments using the...

  • Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and...

    Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 89,000 Assembly 56,400 Maintenance 35,200 — 0.2 0.5 0.3 Cafeteria 28,000 0.8 — 0.1 0.1 Required: Compute the allocation of service department costs to producing departments using the...

  • Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....

    Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Department Direct Costs Maintenance Cafeteria Machining Assembly Machining 99,000 Assembly 64,400 Maintenance 40,000 - 0.2 0.5 0.3 Cafeteria 32,000 0.8 - 0.1 0.1 Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate...

  • Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria....

    Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 96,000 Assembly 70,400 Maintenance 43,600 — 0.2 0.5 0.3 Cafeteria 35,000 0.6 — 0.2 0.2 Compute the allocation of service department costs to producing departments using the direct...

  • Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly...

    Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Cafeteria Services has costs of $295,000 and Maintenance has costs of $175,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest...

  • Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly...

    Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Cafeteria Services has costs of $205,000 and Maintenance has costs of $195,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest...

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