Alpha Manufacturing Corporation has two service departments, Custodial Services and Maintenance, and three production departments, Cutting, Milling, and Assembly. The company allocates the cost of Custodial Services on the basis of square footage and Maintenance on the basis of labor-hours. No distinction is made between variable and fixed costs. Budgeted operating data for the year just completed follow Service Departments Custodial Services Production Departments Maintenance Cutting Milling Assembly Budgeted costs before allocation $84,000 $72,000 $180,000 $135,000 $195,000 Square feet Labor-hours 62,000 80,000 10,000 4,000 44,000 8,000 26,000 8,e00 Required: a. Prepare a schedule to allocate service department costs to the production departments by the direct method. b. Prepare a schedule to allocate service department costs to the production departments by the step-down method, allocating Custodial Services first Complete this question by entering your answers in the table below. Required A Required B Prepare a schedule to allocate service department costs to the production departments by the step-down method, allocating Custodial Services first. (Round your answers to the nearest whole dollar. Negative values must be entered wiith a minus sign.) Service Department Custodial Services Production Departments Maintenance Cutting Milling Assembly Departmental costs Allocation 84 000 72,000 180,000 135,000 195,000 Custodial Services costs (84,000) 42,000 5,250 22.800 0S 208 050 23,100 45,600 200 700 13.650 Maintenance costs (114,000) 45,600 Total costs after allocation 254.250 Required A equlrad Alpha Manufacturing Corporation has two service departments, Custodial Services and Maintenance, and three production departments, Cutting, Milling, and Assembly. The company allocates the cost of Custodial Services on the basis of square footage and Maintenance on the basis of labor-hours. No distinction is mede between variable and fixed costs. Budgeted operating data for the year just completed follow: Service Departments Custodial Production Departments Services Maintenance Cutting Milling Assembly Budgeted costs before allocation Square feet Labor-hours $84,000 $72,000 $180,e0e $135,000 $195,000 62,000 80,000 10,00e 4,000 44,000 8,000 26,000 8,000 Required: a. Prepare a schedule to allocate service department costs to the production departments by the direct method b. Prepare a schedule to allocate service department costs to the production departments by the step-down method, allocating Custodial Services first Complete this question by entering your answers in the table below. Required A Required B Prepare a schedule to allocate service department costs to the production departments by the direct method. (Negative values must be entered with a minus sign.) Service Department Custodial Services Production Departments Maintenance Cutting Miling Assembly Departmental costs Allocation 84.000 72,000 S 180.000 135,000 195,000 Custodial Services costs (84,000) 10,500 14,400 204,000 46.200 27,300 Mantenance costs (72,000) 28,800 210,000 28.800 Total costs after allocation 251,100 RequiredA Required B
