1 Alpha Company has two service departments (Cafeteria Services & Maintenance Services). Alpha has two production departments (Printing Department & Binding Department.) Cafeteria Services has costs of $140,000 and are allocated to production departments based on their number of employees. Maintenance Services has costs of $330,000 and are allocated to production departments based on the number of machines. Information for each section:

# Employees

# Machines

Cafeteria Services

2

-

Maintenance Services

2

-

Printing Department

4

6

Binding Department

8

15

Alpha uses the direct method for service cost allocation. Use this information to determine for Alpha Company the dollar amount of its costs

Cafeteria Service

Maintenance Service

Printing Department

Binding Department

Department Costs

Cafeteria Services

Maintenance Services

Total Allocated Costs

2 Alpha Company has two service departments (Cafeteria Services & Maintenance Services). Alpha has two production departments (Printing Department & Binding Department.) Cafeteria Services has costs of $140,000 and are allocated to production departments based on their number of employees. Maintenance Services has costs of $330,000 and are allocated to production departments based on the number of machines. Information for each section:

# Employees

# Machines

Cafeteria Services

2

-

Maintenance Services

2

-

Printing Department

4

6

Binding Department

8

15

Alpha uses the step method for service cost allocation. Use this information to determine for Alpha Company the dollar amount of its costs that are to be absorbed by

Cafeteria Service

Maintenance Service

Printing Department

Binding Department

Department Costs

Cafeteria Services

Maintenance Services

Total Allocated Costs

3