Q3. ADLG Company has two support departments, SS1 and SS2, and two operating departments, OD1 and OD2. The company has decided to use the direct method and allocate variable SS1 dept. costs based on the number of transactions and fixed SS1 dept. costs based on the number of employees. SS2 dept. variable costs will be allocated based on the number of service requests and fixed costs will be allocated based on the number of computers. The following values have been extracted for the allocation | Total Department variable costs Total department fixed costs Number of transactions Number of employees Number of service requests Number of computers Support Departments SS1 16,000 19,500 50 18 37 20 SS2 19,000 34,000 You are required to allocate variable and fixed costs. 55 24 22 25 Operating Departments OD1 105,000 120,000 250 47 26 31 OD2 68,000 55,000 140 38 32 37
Q3. ADLG Company has two support departments, SS1 and SS2, and two operating departments, OD1 and OD2. The company has decided to use the direct method and allocate variable SS1 dept. costs based on the number of transactions and fixed SS1 dept. costs based on the number of employees. SS2 dept. variable costs will be allocated based on the number of service requests and fixed costs will be allocated based on the number of computers. The following values have been extracted for the allocation | Total Department variable costs Total department fixed costs Number of transactions Number of employees Number of service requests Number of computers Support Departments SS1 16,000 19,500 50 18 37 20 SS2 19,000 34,000 You are required to allocate variable and fixed costs. 55 24 22 25 Operating Departments OD1 105,000 120,000 250 47 26 31 OD2 68,000 55,000 140 38 32 37
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 23E: Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating...
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![Q3. ADLG Company has two support departments, SS1 and SS2, and two operating
departments, OD1 and OD2. The company has decided to use the direct method and allocate
variable SS1 dept. costs based on the number of transactions and fixed SS1 dept. costs based on
the number of employees. SS2 dept. variable costs will be allocated based on the number of
service requests and fixed costs will be allocated based on the number of computers. The
following values have been extracted for the allocation |
Total Department variable costs
Total department fixed costs
Number of transactions
Number of employees
Number of service requests
Number of computers
Support Departments
SS1
16,000
19,500
50
18
37
20
SS2
19,000
34,000
You are required to allocate variable and fixed costs.
55
24
22
25
Operating Departments
OD1
105,000
120,000
250
47
26
31
OD2
68,000
55,000
140
38
32
37](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbb2d5eb6-1837-4927-9aff-9d0953b47759%2F24374990-9189-497d-924a-9d829a7eec42%2F7m1ayfq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q3. ADLG Company has two support departments, SS1 and SS2, and two operating
departments, OD1 and OD2. The company has decided to use the direct method and allocate
variable SS1 dept. costs based on the number of transactions and fixed SS1 dept. costs based on
the number of employees. SS2 dept. variable costs will be allocated based on the number of
service requests and fixed costs will be allocated based on the number of computers. The
following values have been extracted for the allocation |
Total Department variable costs
Total department fixed costs
Number of transactions
Number of employees
Number of service requests
Number of computers
Support Departments
SS1
16,000
19,500
50
18
37
20
SS2
19,000
34,000
You are required to allocate variable and fixed costs.
55
24
22
25
Operating Departments
OD1
105,000
120,000
250
47
26
31
OD2
68,000
55,000
140
38
32
37
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