Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Finch Trust Corporation has two service departments: actuary and economic analysis. Finch also has three operating departments: annuity, fund management, and employee benefit services. The

image text in transcribed
image text in transcribed
image text in transcribed
Finch Trust Corporation has two service departments: actuary and economic analysis. Finch also has three operating departments: annuity, fund management, and employee benefit services. The annual costs of operating the service departments are $654,000 for actuary and $915,600 for economic analysis. Finch uses the direct method to allocate service center costs to operating departments Other relevant data follow polres Anty Tund management Employee benefit services Operating Coats $560,000 960,000 660,000 Revenue $70,000 1,250,000 1.150.000 "The operating costs are measured before allocating service center costs Required a. Use operating costs as the cost driver for allocating service center costs to operating departments, b. Use revenue as the cost driver for allocating service center costs to operating departments Complete this question by entering your answers in the tabs below. Required A Required B ating departments A ction Use Berating costs as the cost driver for allocating service center costs to e 2 d .) to Allocation of actuary cost Department Act Rate Weight of Base Allocated cost b. Use revenue as the cost driver for allocating service center costs to operating departments. Complete this question by entering your answers in the tabs below. points Required A Required B Use operating costs as the cost driver for allocating service center costs to operating departments (Round "Allocation Rate" to 2 decimal places.) Allocation of actuary cost: Department Allocation Rate * Weight of Base - Allocated Cost Annuity Fund management EBS Total located cost References Allocated Cost Allocation of economic analysis cost Department Allocation Ratex Weight of Base Annuity Fund management EBS Total located cost Required ) b. Use revenue as the cost driver for allocating service center costs to operating departments. Complete this question by entering your answers in the tabs below. 10 points Required A Required Use revenue as the cost driver for allocating service center costs to operating departments. (Round Allocation Rate" to 2 decimal places.) Allocation of actuary cost: Department Allocation Rate Annuity Fund management Weight of Base Allocated Cost ences EBS Total allocated cost Weight of Base Allocated Cost Allocation of economie analysis cost: Department Allocation Rate Annuity Fund management FRS Toliated ( Required A

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

Essential Bookkeeping And Financial Accounting

Authors: Emile Woolf International

1st Edition

1848437552, 978-1848437555

More Books

Students also viewed these Accounting questions