Homework Answers
Allocation
| Repairs | HR | IT | M1 | M2 | |
| Service department costs | 20000 | 39600 | 45000 | 0 | 0 |
| HR allocation | 3960 | -39600 | 7920 | 13860 | 13860 |
| IT allocation | 0 | 0 | -52920 | 11760 | 41160 |
| Repairs allocation | -23960 | 0 | 0 | 9584 | 14376 |
| Total Cost allocated | 0 | 0 | 0 | 35204 | 69396 |
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Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The fo...
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and...
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repairs HR IT M1 M2 Repairs — 0 % 0 % 40 % 60 % HR 10 % — 20 % 35 % 35 % IT 0 % 10 % — 20 % 70 % The direct costs of the service departments in the previous period were $20,000...
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and...
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repairs HR Repairs HR - 0% 10% - 0% 10% IT 0% 20% - M1 40% 35% 20% M2 60% 35% 70% The direct costs of the service departments in the previous period were $52,000 for Repairs, $71,600 for HR, and $117,000 for IT. Required: Use the direct...
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). Th...
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow Repairs 60% The direct costs of the service departments in the previous period were $100,000 for Repairs, $119,600 for HR, and $225,000 for IT. Required: Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be indicated by a minus sign....
Help Save & E Bens Corporation has three service departments (Repairs, HR, and IT) and two...
Help Save & E Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow Repairs HR Repairs HR 0% 10% - 0% 10% IT 0% 20% - M1 40% 35% 20% M2 60% 35% 70% The direct costs of the service departments in the previous period were $76,000 for Repairs, $95,600 for HR, and $171,000 for IT. Required:...
Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing Department....
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 20 % HR HR Computing Deposit 20% 60% 65% 15% 20% Loan The budgeted costs in the two service departments for the year are as follows:...
Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing Department....
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% 10% 60% 50% 30% 35% The budgeted costs in the two service departments for the year are as follows: $153,000...
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 $99,000 64,400 40,000 32,000 0.2 0.5 0.1 0.3 0.1 0.8 Required: Use the step method to allocate the service costs, using the following: a. The order...
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...
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 Direct Machining Maintenance Cafeteria Assembly Department Machining Assembly Maintenance Costs $120,000 76,000 45,000 37,000 0.1 0.6 0.3 Cafeteria 0.6 0.2 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order...
The California Community Hospital has two service departments, Cafeteria and Housekeeping, and two operating departments, Surgery...
The California Community Hospital has two service departments, Cafeteria and Housekeeping, and two operating departments, Surgery and Outpatient. The hospital uses the direct method to allocate service department costs to operating departments. It allocates Cafeteria costs based on the number of employees. Cafeteria $40,000 20,000 Departmental costs before allocation Number of employees Housekeeping $10,000 15,000 Surgery $140,000 15,000 Outpatient $360,000 45,000 Total $550,000 Knowledge Check 01 How much Cafeteria cost should be allocated to the Surgery department? $6,316 $8,000 $30,000...
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repairs HR Repairs HR - 0% 10% - 0% 10% IT 0% 20% - M1 40% 35% 20% M2 60% 35% 70% The direct costs of the service departments in the previous period were $52,000 for Repairs, $71,600 for HR, and $117,000 for IT. Required: Use the direct...
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow Repairs 60% The direct costs of the service departments in the previous period were $100,000 for Repairs, $119,600 for HR, and $225,000 for IT. Required: Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be indicated by a minus sign....
Help Save & E Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow Repairs HR Repairs HR 0% 10% - 0% 10% IT 0% 20% - M1 40% 35% 20% M2 60% 35% 70% The direct costs of the service departments in the previous period were $76,000 for Repairs, $95,600 for HR, and $171,000 for IT. Required:...
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 20 % HR HR Computing Deposit 20% 60% 65% 15% 20% Loan The budgeted costs in the two service departments for the year are as follows:...
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% 10% 60% 50% 30% 35% The budgeted costs in the two service departments for the year are as follows: $153,000...
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 $99,000 64,400 40,000 32,000 0.2 0.5 0.1 0.3 0.1 0.8 Required: Use the step method to allocate the service costs, using the following: a. The order...
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...
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 Direct Machining Maintenance Cafeteria Assembly Department Machining Assembly Maintenance Costs $120,000 76,000 45,000 37,000 0.1 0.6 0.3 Cafeteria 0.6 0.2 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order...
The California Community Hospital has two service departments, Cafeteria and Housekeeping, and two operating departments, Surgery and Outpatient. The hospital uses the direct method to allocate service department costs to operating departments. It allocates Cafeteria costs based on the number of employees. Cafeteria $40,000 20,000 Departmental costs before allocation Number of employees Housekeeping $10,000 15,000 Surgery $140,000 15,000 Outpatient $360,000 45,000 Total $550,000 Knowledge Check 01 How much Cafeteria cost should be allocated to the Surgery department? $6,316 $8,000 $30,000...
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