Medusa Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the molding (P1), finishing (P2), and packaging (P3) departments. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet which the production department occupies within the factory. Information about the departments is presented below:
|
Number of |
Number of Square |
||
|
Department |
Costs |
Employees |
Feet Occupied |
|
Payroll (S1) |
$136,000 |
2 |
2,000 |
|
Maintenance (S2) |
$220,000 |
8 |
64,000 |
|
Molding (P1) |
69 |
100,000 |
|
|
Finishing (P2) |
50 |
60,000 |
|
|
Packaging (P3) |
23 |
40,000 |
Medusa uses the direct method to allocate costs. Round all
answers to the nearest dollar.
What amount of the payroll department costs will be allocated to
the molding department?
Medusa Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the...
Evergreen Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Department S1 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet. Data on direct department costs, number of employees, and space occupied are as follows: S1 S2 P1 P2 Direct dept. costs $7,500 $11,000 $27,500 $30,000 Number of employees 10 5 20 25 Space occupied (sq. ft.)...
McHugh Company allocates common Building Department costs to producing departments (P1 and P2) based on space occupied, and it allocates common Personnel Department costs based on the number of employees. Space occupancy and employee data are as follows: Building Personnel Dept. P1 Dept. P2 Space occupied 2,000 ft. 10,000 ft. 120,000 ft. 70,000 ft. Employees 6 10 80 50 If McHugh Company uses the sequential allocation method and the support department with the highest percentage of interdepartmental services is allocated...
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...
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...
The Ceradyne Company has three service departments, S1, S2, and
S3, and two production departments, P1 and P2. The following data
relate to Ceradyne’s allocation of service department
costs:
Budgeted Costs
Number of Employees
S1
$4,101,000
87
S2
3,110,000
58
S3
2,865,000
37
P1
204
P2
306
Service department costs are allocated by the direct method. The
number of employees is used as the allocation base for all service
department costs.
Calculate the total service department cost allocated to each...
Budgeted Costs
Number of Employees
S1
$4,101,000
87
S2
3,110,000
58
S3
2,865,000
37
P1
204
P2
306
Service department costs are allocated by the direct method. The
number of employees is used as the allocation base for all service
department costs.
Allocate service department costs to production departments.
Service
Service dept.
Cost Allocated to
Department
Costs
P1
P2
S1
$4,101,000
$
$
S2
3,110,000
$
S3
2,865,000
$
2) Broadway Department Store allocates the personnel and payroll department costs to the sales departments of Shoes, Automotive, and Clothing. Human resources (personnel) and payroll also provide services to each other. Personnel costs are allocated by number of employees and payroll costs are allocated by gross payroll. Costs and other information for January were as follows: Required: Prepare a schedule that includes the total cost of operating the sales departments for January. Allocate service costs using the step-down method with...
2) Broadway Department Store allocates the personnel and payroll department costs to the sales departments of Shoes, Automotive, and Clothing. Human resources (personnel) and payroll also provide services to each other. Personnel costs are allocated by number of employees and payroll costs are allocated by gross payroll. Costs and other information for January were as follows: Personnel Payroll Shoes Automotive Clothing Current Costs $ 13,800 $ 6,400 $ 24,400 $ 40,000 $ 31,500 Gross Payroll $ 3,000 $ 1,500 $...
The Real McCoys Company has two service departments (S1 and S2) and two production departments (P1 and P2). Department S1 allocates service costs based on machine hours. S2 allocates service costs based on kilowatt hours. The company does NOT make a distinction between fixed and variable costs when allocating service costs. The budgeted total costs in the service departments for 2019 are $70,000 for S1 and $98,800 for S2. Budgeted machine hours and kilowatt hours for the year are as...
Using the direct method, Pone HI Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafetaria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly Number of Square Feet Employees Janitorial Department 100 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 If the Janitorial Department incurs costs of $200,000, how much of that cost is allocated...