Question
1. FF corp. has 2 service departments, admin and accounting, and 2 operating departments, eat and west. Admin costs are allocated based on employees. Accounting
1. FF corp. has 2 service departments, admin and accounting, and 2 operating departments, eat and west.
Admin costs are allocated based on employees.
Accounting costs are allocated based on transactions.
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 80,000 | 35,000 | 234,000 | 900,000 |
| Employees | 5 | 25 | 20 | |
| Transactions | 40,000 | 15,000 | 45,000 |
What is the fully reciprocated cost of Admin using the reciprocal method?
2. Admin costs are allocated based on employees.
Accounting costs are allocated based on transactions.
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 80,000 | 35,000 | 234,000 | 900,000 |
| Employees | 5 | 25 | 20 | |
| Transactions | 40,000 | 15,000 | 45,000 |
What is the fully reciprocated cost of Accounting using the reciprocal method?
3. FF corp. has 2 service departments, admin and accounting, and 2 operating departments , eat and west.
Admin costs are allocated based on employees.
Accounting costs are allocated based on transactions.
The fully reciprocated costs of admin = 95,424
The fully reciprocated costs of accounting = 35,982
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 234,000 | 900,000 | ||
| Employees | 5 | 25 | 20 | |
| Transactions | 40,000 | 15,000 | 45,000 |
How much admin costs are assigned to East?
4. FF corp. has 2 service departments, admin and accounting, and 2 operating departments , eat and west.
FF corp. has 2 service departments, admin and accounting, and 2 operating departments , eat and west.
Admin costs are allocated based on employees.
Accounting costs are allocated based on transactions.
The fully reciprocated costs of admin = 97,307
The fully reciprocated costs of accounting = 35,965
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 234,000 | 900,000 | ||
| Employees | 5 | 25 | 20 | |
| Transactions | 40,000 | 15,000 | 45,000 |
How much admin costs are assigned to Accounting?
5. FF corp. has 2 service departments, admin and accounting, and 2 operating departments , eat and west.
FF corp. has 2 service departments, admin and accounting, and 2 operating departments , eat and west.
Admin costs are allocated based on employees.
Accounting costs are allocated based on transactions.
The fully reciprocated costs of admin = 83,352
The fully reciprocated costs of accounting = 35,473
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 234,000 | 900,000 | ||
| Employees | 5 | 25 | 20 | |
| Transactions | 40,000 | 15,000 | 45,000 |
How much Accounting costs are assigned to Admin?
6. FF corp. has 2 service departments, admin and accounting, and 2 operating departments , eat and west.
FF corp. has 2 service departments, admin and accounting, and 2 operating departments , eat and west.
Admin costs are allocated based on employees.
Accounting costs are allocated based on transactions.
The fully reciprocated costs of admin = 90,957
The fully reciprocated costs of accounting = 35,837
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 234,000 | 900,000 | ||
| Employees | 5 | 25 | 20 | |
| Transactions | 40,000 | 15,000 | 45,000 |
How much Accounting costs are assigned to West?
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