+ a. C division of CS, Inc. has 3 service departments (Cafeteria, Human Resource Management, and Information Technology Support) and two production departments (Department 1 and Department 2). The following information was gathered regarding costs and usage of service departments. Service Department Cafeteria HRM IT Support Usage Rates Costs $ 90,000 $100,000 10% Cafeteria HRM IT Support Production Department 1 Production Department 2 --- 5% 5% 50% 40% --- 10% 40% 40% $150,000 5% 20% --- 25% 50% Create a computer spreadsheet to allocate the service department costs to the production departments utilizing the direct method. Costs to Allocate Costs Allocated to Production Department 1 $50,000 Costs Allocated to Production Department 2 $50,000 Service Department Cafeteria $ 90,000 HRM $100,000 IT Support $150,000 Total Costs Allocated $340,000 $150,000 b. S division of CS, Inc. produces product A216 and product B123 in a joint process. The company has elected to use the Net Realizable Value method to allocate the $110,000 joint costs to the two products. The following additional information has been gathered. Product A216 Sales Value at Split-off $98,000 Additional Processing Costs $47,000 B123 $143,000 $109,000 Create a computer spreadsheet to allocate the Joint Product Costs to product A216 and B123 using the Net Realizable Value method. Product A216 Sales Value at Split-off 98,000 Additional Processing Costs B123 109,000 Net Realizable Value 51,000 Net Realizable Value Percentage Amount Allocated 60% 44,000