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Greendale Office Products has a warehouse that supplies office products to its store locations. The warehouse has two service departments, Human Resources (HR) and Information
Greendale Office Products has a warehouse that supplies office products to its store locations. The warehouse has two service departments, Human Resources (HR) and Information Technology (IT), and two operating departments, Packaging and Delivery. The following are partial cost allocation results for November: Costs allocated to Packaging Costs allocated to Delivery $ 107,000 ? ? from HR from IT $ 175,800 from HR from IT Total costs for the two service departments are $435,000. IT's services are provided as follows: 17.5 percent to Packaging. 70 percent to Delivery. The direct method of allocating costs is used. Required: a. What are the total service department costs (HR + IT) allocated to Delivery? b. Complete the table under Required B. c. What proportion of HR's costs were allocated to Packaging? To Delivery? Required A Required B Required C What are the total service department costs (HR + IT) allocated to Delivery? Note: Do not round intermediate calculations. Total costs allocated to Delivery From Human Resources Information Technology To Packaging Delivery $ 107,000 175,800 What proportion of HR's costs were allocated to Packaging? To Delivery? Note: Round your percentage answers to the nearest whole numbers. Allocation of HR's costs Packaging Delivery % %
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