Support Department Allocations The centralized computer technology department of Hardy Company has expenses of $458,50C The department has provided a total of 13,100 hours of service for the period. The Retail Division has used 5,109 hours of computer technology service during the period, and the Commercial Division has used 7,991 hours of computer technology service. How much should each division be allocated for computer technology department services? Dc not round interim calculations. Retail Division Commercial Division

Support Department Allocations The centralized computer technology department of Hardy Company has expenses of $458,50C The department has provided a total of 13,100 hours of service for the period. The Retail Division has used 5,109 hours of computer technology service during the period, and the Commercial Division has used 7,991 hours of computer technology service. How much should each division be allocated for computer technology department services? Dc not round interim calculations. Retail Division Commercial Division

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 2BE: Support department allocations The centralized computer technology department of Hardy Company has...

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Refer to the data in Exercise 7.18. When the capacity of the HR Department was originally established, the normal usage expected for each department was 20,000 direct labor hours. This usage is also the amount of activity planned for the two departments in Year 1 and Year 2. Required: 1. Allocate the costs of the HR Department using the direct method and assuming that the purpose is product costing. 2. Allocate the costs of the HR Department using the direct method and assuming that the purpose is to evaluate performance.
Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating support service costs by switching to the direct method. Required: 1. Allocate the costs of the support departments to the producing departments using the direct method. (Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar.) 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)