Solution:
Service department cost = Direct cost + allocated costs
Maintenance department cost = $340,000
Processing department cost = $92,000 + $10% of maintenance cost = $92,000 + ($340,000*10%) = $126,000
Administration department cost = $620,000+ 40% of processing cost + 20% of maintenance cost
= $620,000 + ($126,000*40%) + ($340,000*20%) = $738,400
| From | Allocated To: | ||||
| Costs | Processing | Administration | Branches | Electronic | |
| Maintenance (10:20:20:50) | $340,000.00 | $34,000.00 | $68,000.00 | $68,000.00 | $170,000.00 |
| Processing (40:15:45) | $126,000.00 | $0.00 | $50,400.00 | $18,900.00 | $56,700.00 |
| Adminstration (60:40) | $738,400.00 | $0.00 | $0.00 | $443,040.00 | $295,360.00 |
| Total | $529,940.00 | $522,060.00 | |||
X- Ch 11 Extra Credit C Exercise 11-30 Cost Allocation: S C University Printers Has Two...
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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...
instructions help Homework #11 - Chapter 11 Question 1 (of 4) Save & Exit Submit 1 value: 5.00 points Problem 11-54 Cost Allocation: Step and Reciprocal Methods (LO 11-3, 4) Great Easterm 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 Supplying Department Processing Electronic 40% 40% 60% $1,750,000 Processing Administration Branches 10% 60% 15% 50%...
Exercise 11-31 Cost Allocation: Reciprocal Method (LO 11-4) 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 b Direct CostsMaintenance Cafeteria Department Machining Assembly Maintenance Cafeteria Machining Assembly $99,000 64,400 40,000 32,000 0.5 0.3 0.1 0.2 0.8 Required Use the reciprocal method to allocate the service costs....
Exercise 11-29 (Static) Cost Allocation: Direct Method (LO 11-2) University Printers has two service departments (Maintenance and Personnel) and two operating departments Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel Printing 1, e8e1 ,eee Machine-hours Labor-hours Department direct costs 50 588 $...
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: Supplying Department Using Department Processing Administration Maintenance Branches Electronic Processing 0 50 % 0 10 % 40 % Administration 0 0 0 60 % 40 % Maintenance 10 % 20 % 0 20 % 50 % Direct cost $ 93,000 $ 560,000 $ 281,000 $ 4,250,000 $ 2,450,000...
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel Printing Developing 2,01e 1,452 $18,000 Machine-hours Labor-hours 57e 420 352 396 Department direct costs $10,000 $28,000 $31,000 Required: Allocate the service...
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel 585 Machine-hours Labor-hours Department direct costs 460 $10,000 Printing 675 460 $31,000 Developing 3,240 1,380 $19,000 $23,000 Required: Allocate the service...
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University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing), Management has decided to allocate maintenance costs on the basis of machine hours in each department and personnel costs on the basis of labor hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel Printing Developing 455 525 2,520 414 1,587 $12,000 $23,000 $28,000 $19,000 Machine-hours Labor-hours...
Chapter 11 Homework i Saved University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. 0.76 points The following data appear in the company records for the current period: Skipped Maintenance Personnel 1,200 Machine-hours Labor-hours Department direct costs Printing 1,200 600 $14,200 600 $ 2,400...
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University Printers has two service departments Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Machine-hours Labor-hours Department direct costs Maintenance 500 $5,000 Personnel 1,000 $12,000 Printing 1,000 500 $15,000 Developing 3,000 2,000 $10,000...