MedServices Inc. is divided into two operating departments: Laboratory and Tissue Pathology. The company allocates delivery...
Department Cost Allocation MedServices Inc. is divided into two operating departments: Laboratory and Tissue Pathology. The company allocates delivery and accounting costs to each operating department. Delivery costs include the costs of a fleet of vans and drivers that drive throughout the state each day to clinics and doctors’ offices to pick up samples and deliver them to the centrally located labora- tory and tissue pathology offices. Delivery costs are allocated on the basis of number of samples. Accounting costs...
(Appendix 4B) Support Department Cost Allocation MedServices Inc. is divided into two operating departments: Laboratory and Tissue Pathology. The company allocates delivery and accounting costs to each operating department. Delivery costs include the costs of a fleet of vans and drivers that drive throughout the state each day to clinics and doctors' offices to pick up samples and deliver them to the centrally located laboratory and tissue pathology offices. Delivery costs are allocated on the basis of number of samples....
Pott Inc. is divided into 2 operating divisions: Pottery & Retail. The company allocates Power & General Factory department costs to each operating division. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. Allocation for the coming year are based on the following data: Support Departments Operating Divisions Power Department General factory Department Pottery Retail Direct costs $150,000 $160,000 $98,000 $56,000 Normal Activity: Machine Hours -...
Allie, Inc. has two service departments and two operating departments. Allie allocates service department costs using the step-down method, with the service department with the highest cost allocated first. Initial cost for service department 1 was $140,000, and for service department 2, $100,000. Service department 1 is allocated on the basis of department employees, while service department 2 is allocated on the basis of square feet. Cost driver usage is as follows: Service 1 Service 2 Operating 1 Operating...
Pottery Inc., is divided into 2 operating divisions: Pottery and Retail. The company allocates Power and General Factory department costs to each operating division. Power costs are allocated on the basis of number of machine hours and general factory costs on the basis of square footage. Allocations for the coming year are based on the following date? Direct Cost $150,000 $160,000 $98,000 $56,000 Machine Hours 1000 6900 3100 Square Footage 2000 4000 6000 Calculate the allocation...
YaBaDaBaDoo Inc. has two Support Departments and two Operating Departments Budgeted costs and budgeted activity in the various departments for the most recent year are presented below Cafeteria Custodial Services 5224197 Cutting Department $626866 5144295 125 139 Overhead Costs Square Metres of Space Occupied Number of Employees Machine Hour Assembly Department 5817031 11109 200 60.000 7012 20 30 150 40.000 Support Department costs are allocated to Operating Departments with the costs of Custodial Services allocated first on the basis of...
YaBaDaBaDoo Inc. has two Support Departments and two Operating Departments, Budgeted costs and budgeted activity in the various departments for the most recent year presented below Cafeteria Custodia Services 5224197 1395 Assembly Department 5817031 5144295 Cutting Department 5626866 7012 Overhead Costs Square Metres of Space Occupied Number of Employees Machine Hour 1254 11105 20 30 150 200 60.000 40.000 Support Department costs are allocated to Operating Departments with the costs of Custodial Services allocated first on the basis of square...
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Administration Accounting Domestic International Employees – 28 46 26 Transactions 32,000 – 25,000 100,000 Department direct costs $ 363,000 $ 145,000 $ 935,000 $ 3,590,000 Required: a. Allocate the cost of the service departments to the operating...
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows: Administration Accounting Domestic International Employees – 24 54 22 Transactions 31,000 – 18,000 72,000 Department direct costs $ 352,000 $ 146,000 $ 945,000 $ 3,600,000 Required: a. Allocate the cost of the service departments to the operating...
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Employees Transactions Department direct costs Administration Accounting 22 33,000 $363,000 $149,000 Domestic 48 22,000 $935,000 International 30 88,000 $3,520,000 Required: a. Allocate the cost of the service departments to the operating departments using the direct method. b....