Goldberg Corporation has three production departments A, B, and
C. Goldberg Corporation also has two service departments,
Administration and Personnel. Administration costs are allocated
based on value of assets employed, and Personnel costs are
allocated based on number of employees. Assume that Administration
provides more service to the other departments than does the
Personnel Department.
Dept. Direct Costs Employees Asset Value
Admin. $900,000 25 $450,000
Personnel 350,000 10 600,000
A 700,000 15 300,000
B 200,000 5 150,000
C 250,000 10 800,000
Refer to Goldberg Corporation. Using the step method, what amount
of Personnel costs is allocated to A (round to the nearest dollar)?
Show work.
Administration department cost allocated to personnel = 900000/1850000*600000 = 291892
Personnel department cost allocated to A = (291892+350000)*15/30 = $320946
Goldberg Corporation has three production departments A, B, and C. Goldberg Corporation also has two service...
Goldberg Corporation has three production departments A, B, and C. Goldberg Corporation also has two service departments, Administration and Personnel. Administration costs are allocated based on value of assets employed, and Personnel costs are allocated based on number of employees. Assume that Administration provides more service to the other departments than does the Personnel Department. Dept. Direct Costs Employees Asset Value Admin. $900,000 25 $450,000 Personnel 350,000 10 600,000 A 700,000 15 300,000 B 200,000 5 150,000 C 250,000 10...
Goldberg Corporation has three production departments A, B, and C. Goldberg Corporation also has two service departments, Administration and Personnel. Administration costs are allocated based on value of assets employed, and Personnel costs are allocated based on number of employees. Assume that Administration provides more service to the other departments than does the Personnel Department. Dept. Direct Costs Employees Asset Value Admin. $900,000 25 $450,000 Personnel 350,000 10 600,000 A 700,000 15 300,000 B 200,000 5 150,000 C 250,000 10...
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $360,000 are allocated on the basis of budgeted maintenance−hours. Personnel Department costs of $140,000 are allocated based on the number of employees. The costs of operating departments A and B are $200,000 and $300,000, respectively. Data on budgeted maintenance−hours and number of employees are as follows: Support Departments Production Departments Maintenance Department Personnel Department A B Budgeted costs $360,000 $140,000 $200,000 $300,000 Budgeted maintenance−hours NA 860 1,210...
Anderson Enterprises has three service departments, Administration, Maintenance and security and two production departments, Machining and Assembly. Total Manufacturing overhead was either directly traced or allocated to all of the departments resulting gin a total of $300,000 of overhead in the Maintenance Department, $240,000 in the administration department, $135,000 in the security department, $1,000,000 in the machining department and $300,000 in the assembly department. The company allocates service department cost using the step method. The maintenance department overhead is allocated...
State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows. Administration Communications Facilities Deposits Loans Direct costs $230,000 $270,000 $252,000 $7,840,000 $4,700,000 Employee hours 29,000 33,000 22,500 419,000 350,000 Number of Employees 6 17 7 220 150 Square footage occupied 4,800 13,800 5,200 248,400 203,200 The costs of...
State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows: Administration Communications Facilities Deposits Loans Direct costs $ 240,000 $ 350,000 $ 256,000 $ 7,740,000 $ 5,400,000 Employee hours 22,000 32,000 21,000 438,000 386,000 Number of employees 7 14 5 210 160 Square footage occupied 4,600 13,600 5,200...
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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...
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