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Whispering's Market United (WMU) is an umbrella organization for all Individuals who are go-getters In home-grown produce, homemade Jams/Jellies, artisan breads, and other hand-crafted Items to be sold on local street corners. It represents a proud group of folks who are trying to keep the small producer and the health-conscious consumer top-of-mind when it comes to filling the refrigerator and pantry As a large organization that provides a variety of services for Its regional member clubs, WMU continually strives to better understand its own profitability. WMU has four key support services to assist its members: Member Services, Social Media, Resource Deployment, and Administrative Services. These four support departments exist for the benefit of the three operating segments, which are organized geographically: East, Central, and West While the support services primarily assist the operating segments, they also cross over and assist each other. The services offered by the support departments, along with the original cost of each support department, are as follows. Original cost Member Services hours Social Media hours Resource Deployment hours Admin. Services hours (a) Total Member Services $ $20,300 $31,200 100 East Support Departments Social Resource Admin. Media Deployment Services 100 200 300 $39,300 $52,000 200 1 Central East Operating Segments Not available 600 500 400 500 Central West Not available 300 500 500 400 West Not available Using the direct method, allocate the support services costs to the operating segments, showing the total support costs that each operating segment will be accountable for as your final result. (Round answers to 2 decimal places, eg. 15.25) Operating Segments 500 500 600 400

Whispering's Market United (WMU) is an umbrella organization for all Individuals who are go-getters In home-grown produce, homemade Jams/Jellies, artisan breads, and other hand-crafted Items to be sold on local street corners. It represents a proud group of folks who are trying to keep the small producer and the health-conscious consumer top-of-mind when it comes to filling the refrigerator and pantry As a large organization that provides a variety of services for Its regional member clubs, WMU continually strives to better understand its own profitability. WMU has four key support services to assist its members: Member Services, Social Media, Resource Deployment, and Administrative Services. These four support departments exist for the benefit of the three operating segments, which are organized geographically: East, Central, and West While the support services primarily assist the operating segments, they also cross over and assist each other. The services offered by the support departments, along with the original cost of each support department, are as follows. Original cost Member Services hours Social Media hours Resource Deployment hours Admin. Services hours (a) Total Member Services $ $20,300 $31,200 100 East Support Departments Social Resource Admin. Media Deployment Services 100 200 300 $39,300 $52,000 200 1 Central East Operating Segments Not available 600 500 400 500 Central West Not available 300 500 500 400 West Not available Using the direct method, allocate the support services costs to the operating segments, showing the total support costs that each operating segment will be accountable for as your final result. (Round answers to 2 decimal places, eg. 15.25) Operating Segments 500 500 600 400

Cornerstones of Cost Management (Cornerstones Series)
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 17E
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Whispering's Market United (WMU) is an umbrella organization for all Individuals who are go-getters In home-grown produce, homemade jams/Jellies, artisan breads, and other hand-crafted Items to be sold on local street corners. It represents a proud group of folks who are trying to keep the small producer and the health-conscious consumer top-of-mind when it comes to filling the refrigerator and pantry. As a large organization that provides a variety of services for Its regionall member clubs, WMU continually strives to better understand its own profitability. WMU has four key support services to assist Its members: Member Services, Social Media, Resource Deployment, and Administrative Services. These four support departments exist for the benefit of the three operating segments, which are organized geographically: East, Central, and West. While the support services primarily assist the operating segments, they also cross over and assist each other. The services offered by the support departments, along with the original cost of each support department, are as follows. Original cost Member Services hours Social Media hours Resource Deployment hours Admin. Services hours (a) Support Departments Member Social Resource Admin. Services Media Deployment Services Total $ $20,300 100 East 100 $31,200 200 300 $39,300 I 200 $52,000 Central I I East Operating Segments Not available 600 500 400 500 Central West Not available 300 500 500 400 West Not available Using the direct method, allocate the support services costs to the operating segments, showing the total support costs that each operating segment will be accountable for as your final result. (Round answers to 2 decimal places, e.g. 15.25.) Operating Segments 500 500 600 400
Transcribed Image Text:Whispering's Market United (WMU) is an umbrella organization for all Individuals who are go-getters In home-grown produce, homemade jams/Jellies, artisan breads, and other hand-crafted Items to be sold on local street corners. It represents a proud group of folks who are trying to keep the small producer and the health-conscious consumer top-of-mind when it comes to filling the refrigerator and pantry. As a large organization that provides a variety of services for Its regionall member clubs, WMU continually strives to better understand its own profitability. WMU has four key support services to assist Its members: Member Services, Social Media, Resource Deployment, and Administrative Services. These four support departments exist for the benefit of the three operating segments, which are organized geographically: East, Central, and West. While the support services primarily assist the operating segments, they also cross over and assist each other. The services offered by the support departments, along with the original cost of each support department, are as follows. Original cost Member Services hours Social Media hours Resource Deployment hours Admin. Services hours (a) Support Departments Member Social Resource Admin. Services Media Deployment Services Total $ $20,300 100 East 100 $31,200 200 300 $39,300 I 200 $52,000 Central I I East Operating Segments Not available 600 500 400 500 Central West Not available 300 500 500 400 West Not available Using the direct method, allocate the support services costs to the operating segments, showing the total support costs that each operating segment will be accountable for as your final result. (Round answers to 2 decimal places, e.g. 15.25.) Operating Segments 500 500 600 400
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