Question

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 $60,000 for Repairs, $79,600 for HR, and $135,000 for IT. Required: Use the step method to allocate the service department costs to the production departments. Allocate HR costs first, followed by IT, and then Repairs. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Please show your work.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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 $56,000...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. Supplying Department Using Department Engineering Administration Maintenance Fabrication Assembly Engineering 0 50 % 0 10 % 40 % Administration 10 % 0 20 % 50 % 20 % Maintenance 0 50 % 0 20 % 30 % Direct cost $ 24,000 $ 179,500 $ 25,000 $ 185,000 $ 50,000    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: The user of Service Provider of Service HR Computing HR — 15 % Computing 10 % — Deposit 60 % 50 % Loan 30 % 35 % The budgeted costs in the two...
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 130,000 Assembly 79,000 Maintenance 46,000 — 0.1 0.7 0.2 Cafeteria 34,000 0.8 — 0.1 0.1 Required: Use the step method to allocate the service costs, using the following:...
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 110,000 Assembly 76,000 Maintenance 49,000 — 0.2 0.6 0.2 Cafeteria 37,000 0.8 — 0.1 0.1 Required: Use the step method to allocate the service costs, using the following:...
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 130,000 Assembly 76,000 Maintenance 55,000 — 0.3 0.4 0.3 Cafeteria 37,000 0.6 — 0.2 0.2 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is...
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 140,000 Assembly 65,000 Maintenance 48,000 — 0.1 0.5 0.4 Cafeteria 35,000 0.7 — 0.2 0.1 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is...
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 140,000 Assembly 84,000 Maintenance 51,000 — 0.2 0.4 0.4 Cafeteria 41,000 0.8 — 0.1 0.1 Required: Use the step method to allocate the service costs, using the following:...
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 Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 145,000 Assembly 65,000 Maintenance 50,000 — 0.3 0.3 0.4 Cafeteria 36,000 0.8 — 0.1 0.1 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is...
Aurora National Bank has two service departments, the Human Resources (HR) Department and the Computing Department....
Aurora 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 Human Resources Computing   Human Resources (HR) — 20 %   Computing 10 % —   Deposit 60 % 40 %   Loan 30 % 40 % The budgeted costs...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT