Homework Help is Here – Start Your Trial Now!
Business
Accounting
ABCO Mortgage Company has the following two service and production departments related to its lending and servicing business:    Service Departments Production Lending Departments   HR Accounting Commercial Consumer Department cost $110,000 $225,500 $2,800,000 $1,600,000 Number of employees 2 3 9 11 Number of transactions 750 2,250 3,650 6,350 HR costs are allocated on the basis of number of employees.  Accounting cost are allocated based on the number of transactions.    Required:  Using the Direct Method, allocate the amounts of overhead from the Accounting service department to Consumer production department.

ABCO Mortgage Company has the following two service and production departments related to its lending and servicing business:    Service Departments Production Lending Departments   HR Accounting Commercial Consumer Department cost $110,000 $225,500 $2,800,000 $1,600,000 Number of employees 2 3 9 11 Number of transactions 750 2,250 3,650 6,350 HR costs are allocated on the basis of number of employees.  Accounting cost are allocated based on the number of transactions.    Required:  Using the Direct Method, allocate the amounts of overhead from the Accounting service department to Consumer production department.

Financial & Managerial Accounting
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter23: Performance Evaluation For Decentralized Operations
Section: Chapter Questions
Problem 23.17EX
See similar textbooks
icon
Related questions
Question

QUESTION 24

  1.  

    ABCO Mortgage Company has the following two service and production departments related to its lending and servicing business: 

     

    Service Departments

    Production Lending Departments

     

    HR

    Accounting

    Commercial

    Consumer

    Department cost

    $110,000

    $225,500

    $2,800,000

    $1,600,000

    Number of employees

    2

    3

    9

    11

    Number of transactions

    750

    2,250

    3,650

    6,350

    HR costs are allocated on the basis of number of employees.  Accounting cost are allocated based on the number of transactions.

     

     Required:  Using the Direct Method, allocate the amounts of overhead from the Accounting service department to Consumer production department.

     

       

    $150,000
       

     

     

     

    $169,125

     
       

    $131,000
       

     

    $143,192.50

     

     

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Segment Reporting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS