The centralized computer technology department of Crutchfield Company has costs of $982,500. The department has provided a total of 13,100 hours of service for the period. The Retail Division has used 5,900 hours of computer technology service during the period, and the Commercial Division has used 7,200 hours of computer technology service How much should each division be allocated for computer technology department services? Retail Division Commercial Division

The centralized computer technology department of Crutchfield Company has costs of $982,500. The department has provided a total of 13,100 hours of service for the period. The Retail Division has used 5,900 hours of computer technology service during the period, and the Commercial Division has used 7,200 hours of computer technology service How much should each division be allocated for computer technology department services? 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...

See similar textbooks

Similar questions

Support Department Allocations The centralized computer technology department of Hardy Company has expenses of $458,500. 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? Do not round interim calculations. Retail Division $ Commercial Division $
22. Question Content Area Support Department Allocations The centralized computer technology department of Hardy Company has expenses of $28,000. The department has provided a total of 2,000 hours of service for the period. The Retail Division has used 1,620 hours of computer technology service during the period, and the Commercial Division has used 380 hours of computer technology service. How much should each division be allocated for computer technology department services? Do not round interim calculations. Retail Division $ Commercial Division $
Direct Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Number of employees Square footage Support Departments Producing Departments Human Resources $160,000 General Factory $360,000 Fabricating Assembly $114,200 $95,000 60 45 80 1,500 6,000 14,000 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Chekov Company uses the direct method of support department cost allocation. Required: 1. Calculate the allocation ratios for the four departments using the direct method. If an amount is zero, enter "0". Round your answer to the nearest cent. Proportion of Driver Used by Human Resources Human Resources General Factory General Factory Fabricating Assembly 2. Using the direct method, allocate the costs of the…
Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments HumanResources GeneralFactory Fabricating Assembly Direct costs $170,000 $350,000 $114,800 $95,000 Normal activity: Number of employees — 60 80 170 Square footage 1,000 — 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Valron Company uses the direct method of support department cost allocation. Required:
Thornton Corporation's computer services department assists two operating departments in using the company's information system effectively. The annual cost of computer services is $626,200. The production department employs 37 employees, and the sales department employs 25 employees. Thornton uses the number of employees as the cost driver for allocating the cost of computer services to operating departments. Required Allocate the cost of computer services to operating departments. Department Allocated Cost Production Sales
Departmental Expense Allocation Spatula Galaxy has 3 departments: materials, manufacturing, and packaging. In a recent month the 3 departments incurred 3 shared indirect expenses. The amounts follow: Indirect Expense Supervision Utilities Insurance Departmental data for Spatula Galaxy follows: Department Materials Cost Allocation Base $80,000 Number of employees $60,000 Square footage $30,000 Value of assets in use Manufacturing Packaging Employees 20 20 40 Square Feet 10,000 25,000 5,000 Asset Values $5,000 $35,000 $10,000 Use the information above to allocate the indirect expenses across the 3 departments.
Technology and Personnel, and two operating departments, Prepress and Printing. Service Department Operating Department Information Technology $ 27,412 Printing $ 530,110 Personnel Prepress Departmental costs $ 27,008 $ 376,940 Computer workstations 28 19 51 38 Employees 27 14 98 30 Information Technology Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total Prepress Department cost after service department allocations is closest to: Multiple Choice $406,961 $413,326 $402,881 $410,563
Sequential (Step) Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments HumanResources GeneralFactory Fabricating Assembly Direct costs $165,000 $380,000 $114,200 $90,000 Normal activity: Number of employees — 40 70 150 Square footage 1,800 — 5,500 13,200 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded…
Support department cost allocation-sequential method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Cafeteria Cutting Assembly Department Department Department Department Department costs $310,000 $169,000 $1,504,000 $680,000 Square feet Number of employees 50 5,000 1,000 4,000 10 30 10 Allocate the support department costs to the production departments using the sequential method. Allocate the support department with the highest department cost first. Cutting Assembly Department Department Janitorial Department Cafeteria Department
Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Materials Personnel Manufacturing Packaging Employees Square Feet Asset Values $ 7,900 4,740 45,820 20,540 $ 79,000 38 19 76 57 64,750 9,250 92,500 18,500 Total 190 185,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Cost Allocation Base $ 84,400 Number of employees 69,000 Square feet occupied 32,000 Asset values $ 185,400 Insurance Total Allocate each of the three indirect expenses to the four departments. Supervision Cost to be Allocated Allocation Base Percent of Allocation Base Allocated Cost expenses Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals Cost to be Allocated Utilities Allocation Base Percent of Allocation Base Allocated Cost Department Numerator Denominator % of Total…
Comprehensive support department allocations Management at C. Pier Press has decided to allocate costs of the paper’s two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employed Administration $390,750 5 $193,550 Human resources 246,350 4 145,850 Advertising 478,900 6 381,200 Circulation 676,300 13 935,150 Totals $1,792,300 28 $1,655,750 a. Using the direct method, allocate the support department costs to the revenue-generating departments.Note: Round percentages in your calculation to the nearest whole percent (for example, round 34.5% to 35%).Note: Round your final answer to the nearest whole dollar.Total…
Sequential (Step) Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Number of employees Square footage Support Departments Producing Departments Human Resources General Factory Fabricating Assembly $150,000 $360,000 $120,900 $86,000 1,500 60 45 80 6,000 14,000 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to six significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Proportion…