Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

| - books, an online back retaler, has two operating departments corporate sales and consumer sales and two support departmentshuman resources and information systems. Click

image text in transcribed

| - books, an online back retaler, has two operating departments corporate sales and consumer sales and two support departmentshuman resources and information systems. Click the icon to view additional Information) The following data are available for September 2020: Click the icon in view the data (Click the icon to view the direct allocation data. Click the icon to view the step-down allocation data Read the requirements 1 B SUPPORT DEPARTMENTS Human Information Resources Systems E OPERATING DEPARTMENTS Corporate Consumer Sales Sales ) S 75,000 $ 230,000 s 994,000 $ 486,000 2 2 Budgeted costs incurred before any 3 interdepartment cost allocations Support work supplied by human 4 resources department 5 Budgeted number of employees Support work supplied by information 6 systems department Budgeted processing time (in 7 minutes) $ 0 25 60 40 Support Departments Operating Departments HR Info Systems Corporate Consumer Total 75,000 $ 230,0DD $ 994,000 $ 486,000 $ 1,785,000 (75,000) 45,000 30,000 (230,000) 184,000 46,000 0$ 0 $ 1,223,000 $ 562,000 $ 1,785,000 Costs incurred Allocation of HR costs Allocation of Info Systems costs Total budgeted costs of operating departments $ 375 0 2,700 675 Support Departments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred $ 75,000 $ 230,000 $ 994,000 $ 486,000 S 1,785,000 (75,000) 15.000 Allocation of HR costs 36.000 24,000 $ 0 245,000 (245,000) Allocation of Info. Systems costs 196,000 49,000 $ 0 $ 1,226,000 $ 559,000 $ 1,785.000 Total budgeted costs of operating departments Proportions for services provided to other support departments: human resources (HR), 0 20000; information sytems (IS). 0.10000 el Requirement 2. Allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. (Round proportions to five decimal places, xxxxx, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by locating costs Entra for zero balances) Support Deparments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred S Allocation of HR costs Allocation of Systems costs Total budgeted costs of operating departments This time, use repeated iterations. (Round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "for any zero balances) Support Departments Operating Departments Reciprocal Method Info Systems Corporate Consumer Total Budgeted overhead costs before interdepartment cost allocations $ First allocation of HR costs HR First allocation of info Systems costs Second allocation of HR costs Second allocation of Info Systems costs Third allocation of HR.com Third allocation of info Systems coste Fourth location of HR costs Fourth allocation of info Systems costs Total budgeted overhead of operating departments | - books, an online back retaler, has two operating departments corporate sales and consumer sales and two support departmentshuman resources and information systems. Click the icon to view additional Information) The following data are available for September 2020: Click the icon in view the data (Click the icon to view the direct allocation data. Click the icon to view the step-down allocation data Read the requirements 1 B SUPPORT DEPARTMENTS Human Information Resources Systems E OPERATING DEPARTMENTS Corporate Consumer Sales Sales ) S 75,000 $ 230,000 s 994,000 $ 486,000 2 2 Budgeted costs incurred before any 3 interdepartment cost allocations Support work supplied by human 4 resources department 5 Budgeted number of employees Support work supplied by information 6 systems department Budgeted processing time (in 7 minutes) $ 0 25 60 40 Support Departments Operating Departments HR Info Systems Corporate Consumer Total 75,000 $ 230,0DD $ 994,000 $ 486,000 $ 1,785,000 (75,000) 45,000 30,000 (230,000) 184,000 46,000 0$ 0 $ 1,223,000 $ 562,000 $ 1,785,000 Costs incurred Allocation of HR costs Allocation of Info Systems costs Total budgeted costs of operating departments $ 375 0 2,700 675 Support Departments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred $ 75,000 $ 230,000 $ 994,000 $ 486,000 S 1,785,000 (75,000) 15.000 Allocation of HR costs 36.000 24,000 $ 0 245,000 (245,000) Allocation of Info. Systems costs 196,000 49,000 $ 0 $ 1,226,000 $ 559,000 $ 1,785.000 Total budgeted costs of operating departments Proportions for services provided to other support departments: human resources (HR), 0 20000; information sytems (IS). 0.10000 el Requirement 2. Allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. (Round proportions to five decimal places, xxxxx, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by locating costs Entra for zero balances) Support Deparments Operating Departments HR Info Systems Corporate Consumer Total Costs incurred S Allocation of HR costs Allocation of Systems costs Total budgeted costs of operating departments This time, use repeated iterations. (Round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "for any zero balances) Support Departments Operating Departments Reciprocal Method Info Systems Corporate Consumer Total Budgeted overhead costs before interdepartment cost allocations $ First allocation of HR costs HR First allocation of info Systems costs Second allocation of HR costs Second allocation of Info Systems costs Third allocation of HR.com Third allocation of info Systems coste Fourth location of HR costs Fourth allocation of info Systems costs Total budgeted overhead of operating departments

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Performance Measurement In Finance

Authors: John Knight, Stephen Satchell, Nathalie Farah

1st Edition

0750650265, 978-0750650267

More Books

Students also viewed these Finance questions

Question

3. What are the main benefits of using more information technology?

Answered: 1 week ago