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Exercise 8.28 (Part Level Submission) Cullumber Company has two service departments (personnel and financial) that provide services for one another as well as for two
Exercise 8.28 (Part Level Submission) Cullumber Company has two service departments (personnel and financial) that provide services for one another as well as for two production departments, assembly and finishing. Data for the month follow: Financial Personnel 6 $16,000 Employees Payroll 8 Assembly 21 $29,500 Finishing 16 $27,300 $13,400 Personnel department costs were $80,700, and financial department costs were $40,500. Cullumber uses employees as the allocation base for personnel department costs and payroll costs for financial departmer costs Allocate support costs using the step-down method, with personnel costs allocated first. (Round percentages to 4 decimal places, e.g. 15.2574% and other answers to 0 decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Support Departments Personnel Financial Operating Departments Assembly Finishing Total Allocation Bases X Number of employees 0 8 21 16 45 Allocation percent 0 % 17.7778% 46.6667 % 35.5556% 100 0 29500 27300 56800 Payroll costs $ $ Allocation percent 0 % 0 % 51.9366 % 48.0633 % 100 Costs 80700 40500 $ Directly assigned costs 121200 x -80700 45803 34897 Step 1: Personnel department costs 000 -40500 21034 19466 Step 2: Financial department costs 66837 54363 121200 Total Allocation Costs
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