Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service departments (Accounting and Facilities) at DuBay Films for the past month follow Supplying Department Accounting Facilities Direct cost Accounting 0 0.10 $ 260,000 Facilities Using Department Training Independent Commercial 0.40 0.20 0 0.10 0.10 0.20 $ 219,500 $ 400,000 $ 208,000 0.30 0.60 $ 294,000 Required: Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. From: Service department costs Accounting Facilities Total allocations Direct costs Total costs Cost Allocation To: Accounting Facilities Training Independent Commercial $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 S 0 $ 0 $ 0
Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service departments (Accounting and Facilities) at DuBay Films for the past month follow Supplying Department Accounting Facilities Direct cost Accounting 0 0.10 $ 260,000 Facilities Using Department Training Independent Commercial 0.40 0.20 0 0.10 0.10 0.20 $ 219,500 $ 400,000 $ 208,000 0.30 0.60 $ 294,000 Required: Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. From: Service department costs Accounting Facilities Total allocations Direct costs Total costs Cost Allocation To: Accounting Facilities Training Independent Commercial $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 S 0 $ 0 $ 0
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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