Question

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:

Allocate the service department costs to the two operating departments using the reciprocal method

this is all the information that was given to me.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Merchant Manufacturing Company has two service departments — purchasing and maintenance, and two production departments...
The Merchant Manufacturing Company has two service departments — purchasing and maintenance, and two production departments — fabrication and assembly. The distribution of each service department's efforts to the other departments is shown below: FROM TO Purchasing Maintenance Fabrication Assembly Purchasing 0 % 35 % 50 % 15 % Maintenance 45 % 0 % 45 % 10 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing $ 102,000 Maintenance 24,000 Fabrication...
Anderson Enterprises has three service departments, Administration, Maintenance and security and two production departments, Machining and...
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...
The Merchant Manufacturing Company has two service departments — purchasing and maintenance, and two production departments...
The Merchant Manufacturing Company has two service departments — purchasing and maintenance, and two production departments — fabrication and assembly. The distribution of each service department's efforts to the other departments is shown below: FROM TO Purchasing Maintenance Fabrication Assembly Purchasing 0 % 65 % 20 % 15 % Maintenance 15 % 0 % 75 % 10 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing $ 120,000 Maintenance 42,000 Fabrication...
Cooper Ltd manufactures home security devices. The firm has two production departments: the Fabrication Department and...
Cooper Ltd manufactures home security devices. The firm has two production departments: the Fabrication Department and the Assembly Department. The firm also has three support departments: the Engineering Department, the Information Technology Department, and the Purchasing Department. The usage of these three support departments’ output for 2018 was as follows: User of Services Support departments Production departments Provider of Services Engineering Information Technology Purchasing Fabrication Assembly Engineering 0% 0% 0% 40% 60% Information Technology 25% 0% 10% 25% 40% Purchasing...
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International....
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 44 32 Transactions 32,000 – 24,000 96,000 Department direct costs $ 354,000 $ 148,000 $ 940,000 $ 3,710,000 Required: a. Allocate the cost of the service departments to the operating...
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...
The Merchant Manufacturing Company has two service departments — purchasing and maintenance, and two production departments...
The Merchant Manufacturing Company has two service departments — purchasing and maintenance, and two production departments — fabrication and assembly. The distribution of each service department's efforts to the other departments is shown below: FROM TO Purchasing Maintenance Fabrication Assembly Purchasing 0 % 30 % 45 % 25 % Maintenance 70 % 0 % 20 % 10 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing $ 147,000 Maintenance 69,000 Fabrication...
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 73,000 Maintenance 45,000 — 0.1 0.7 0.2 Cafeteria 33,000 0.7 — 0.1 0.2 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 $ 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...
The Merchant Manufacturing Company has two service departments — purchasing and maintenance, and two production departments...
The Merchant Manufacturing Company has two service departments — purchasing and maintenance, and two production departments — fabrication and assembly. The distribution of each service department's efforts to the other departments is shown below: FROM TO Purchasing Maintenance Fabrication Assembly Purchasing 0 % 45 % 40 % 15 % Maintenance 35 % 0 % 35 % 30 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing $ 108,000 Maintenance 30,000 Fabrication...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT