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 Support Departments Resource Member Social Admin. Services Media Deployment Services $20,300 $31,200 100 100 200 300 $39,300 $52,000 I 200 East Operating Segments Not available 600 500 400 500 Central Not available 300 500 500 400 West Not available 500 500 600 400

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 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
Member
Services
$20,300 $31,200
100
Support Departments
Social Resource Admin.
Media Deployment Services
100
200
300
$39,300 $52,000
200
I
East
Operating Segments
Not
available
600
500
400
500
Central
Not
available
300
500
500
400
West
Not
available
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 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 Member Services $20,300 $31,200 100 Support Departments Social Resource Admin. Media Deployment Services 100 200 300 $39,300 $52,000 200 I East Operating Segments Not available 600 500 400 500 Central Not available 300 500 500 400 West Not available 500 500 600 400
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.)
Total $
(b)
e Textbook and Media
East
Total
Save for Later
49580
East
$
Operating Segments
SA
Central
43850
Using the reciprocal method in Excel, allocate the support costs to the operating segments, showing the total support costs that
that each operating segment will be accountable for as your final result. (Round answers to 2 decimal places, e.g. 15.25.)
Operating Segments
Central
$
West
$
49370
West
Assistance Used
Attempts: 1 of 3 used
Attempts: 0 of 3 used
Submit Answer
Transcribed Image Text: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.) Total $ (b) e Textbook and Media East Total Save for Later 49580 East $ Operating Segments SA Central 43850 Using the reciprocal method in Excel, allocate the support costs to the operating segments, showing the total support costs that that each operating segment will be accountable for as your final result. (Round answers to 2 decimal places, e.g. 15.25.) Operating Segments Central $ West $ 49370 West Assistance Used Attempts: 1 of 3 used Attempts: 0 of 3 used Submit Answer
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