Exercise 11-31 (Algo) Cost Allocation: Reciprocal Method, Two Service Departments (LO 11-1) 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 0.20 $ 250,000 Facilities 0.40 0 $ 214,500 Using Department Training 0.30 0.20 $ 390,000 Independent 0.20 0.15 $ 207,000 Commercial 0.10 0.45 $ 293,000 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.
Exercise 11-31 (Algo) Cost Allocation: Reciprocal Method, Two Service Departments (LO 11-1) 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 0.20 $ 250,000 Facilities 0.40 0 $ 214,500 Using Department Training 0.30 0.20 $ 390,000 Independent 0.20 0.15 $ 207,000 Commercial 0.10 0.45 $ 293,000 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.
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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![Exercise 11-31 (Algo) Cost Allocation: Reciprocal Method, Two Service Departments (LO 11-1)
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
From:
Service department costs
Accounting
Facilities
Total allocations
Direct costs
Total costs
Accounting
$
0
0.20
$ 250,000
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.
Accounting
$
0 $
Facilities
0.40
0
$ 214,500
0 $
Using Department
Training
0.30
0.20
$ 390,000
Facilities
0
Cost Allocation To:
Training
$
0 $
Independent
0.20
0.15
$ 207,000
0 $
0
$
Commercial
0.10
0.45
$ 293,000
Independent
0 $
0 $
Commercial
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc3182f1c-7375-4a50-8088-f06a8a8e9532%2F334caa3a-2b34-44cc-8b5d-1b60d15dbb57%2Fgvbdfol_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 11-31 (Algo) Cost Allocation: Reciprocal Method, Two Service Departments (LO 11-1)
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
From:
Service department costs
Accounting
Facilities
Total allocations
Direct costs
Total costs
Accounting
$
0
0.20
$ 250,000
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.
Accounting
$
0 $
Facilities
0.40
0
$ 214,500
0 $
Using Department
Training
0.30
0.20
$ 390,000
Facilities
0
Cost Allocation To:
Training
$
0 $
Independent
0.20
0.15
$ 207,000
0 $
0
$
Commercial
0.10
0.45
$ 293,000
Independent
0 $
0 $
Commercial
0
0
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