Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and We costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Bald follows: Employees Hours Department direct costs Personnel 10,800 $ 330,000 Required A Required B Required C Legal 40 $ 190,000 Complete this question by entering your answers in the tabs below. Eastern 120 5,400 $ 1,230,000 Required: a. Allocate the cost of the service departments to the operating divisions using the direct method. b. Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal. c. Allocate the cost of the service departments to the operating divisions using the reciprocal method. Western Allocate the cost of the service departments to the operating divisions using the direct method. 40 1,800 $ 820,000

Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and We costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Bald follows: Employees Hours Department direct costs Personnel 10,800 $ 330,000 Required A Required B Required C Legal 40 $ 190,000 Complete this question by entering your answers in the tabs below. Eastern 120 5,400 $ 1,230,000 Required: a. Allocate the cost of the service departments to the operating divisions using the direct method. b. Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal. c. Allocate the cost of the service departments to the operating divisions using the reciprocal method. Western Allocate the cost of the service departments to the operating divisions using the direct method. 40 1,800 $ 820,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 10E: Support department cost allocation comparison Refer to your answers to Exercises 7-9. Compare the...

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