Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company in Santa Clara would like to allocate costs Incurred In two service departments - Information Systems and Facilities. The two production departments,
A company in Santa Clara would like to allocate costs Incurred In two service departments - Information Systems and Facilities. The two production departments, A and B, are supported by the two service departments. The source and usage of the service department are summarized as follows: To Information Total Labor Department A 1,eee 6ee From Systems Facilities Department a 9,000 Hours Information Systems 5,e00 15,800 2,000 Facilities 400 1,800 The costs originally Incurred In Information Systems are $162,000, and the costs originally Incurred In Facilites are $67,000. Required: Calculate the total amount of Information Systems and Faclities department costs allocated to production departments using the reciprocal method. (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.) Total service costs allocated to costs allocated Department A Total service to Department B The Reciprocal Method
Step by Step Solution
★★★★★
3.42 Rating (152 Votes )
There are 3 Steps involved in it
Step: 1
Insert Page Layout Formulas Data Review View Developer Home T File X Cut A A Wrap Text General Calib...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started