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6 Required information Problem 17-25 Dual Allocation of Service Department Costs (LO 17-1, 17-2) Part 1 of 2 [The following information applies to the questions displayed below.] Tampa Instrument Company manufactures gauges for construction machinery. The company has two production departments: Machining and Assembly. There are three service departments: Maintenance, Human Resources (HR), and 10 Computer Aided Design (CAD). The usage of these service departments' output during the year just completed is as points follows: Skipped Provision of Service Output (in hours of service) Provider of Service User of Service HR Maintenance CAD HR Maintenance 500 Book CAD 500 500 Machining 4, 000 2, 500 3,500 Assembly 5,000 4,000 1, 500 Total 10, 000 7,000 5,090 Print n The budgeted costs in Tampa Instrument Company's service departments during the year are as follows: References HR Maintenance CAD Variable $ 60,000 $ 88, 000 $ 60,000 Fixed 270,000 165, 700 410, 000 Total $330, 000 $253, 700 $470, 090 When Tampa Instrument Company established its service departments, the following long-run needs were anticipated. Long-Run Service Needs (in hours of service) Provider of Service User of Service HR Maintenance CAD HR Maintenance 500 CAD 2, 000 500 Machining 3,000 3,500 4,000 Assembly 4,500 3,000 1, 090 Total 10, 000 7,000 5,000 Required: Use dual cost allocation in conjunction with each of the following methods to allocate Tampa Instrument Company's service department costs: (1) direct method and (2) step-down method. Fraw Problem 17-25 Part 1 1. Direct method combined with dual allocation. a. Variable costs b. Fixed costs c. Total costs allocated Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Direct method combined with dual allocation for variable costs. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Production Departments Provider of Service Machining Assembly HR Maintenance CAD Total variable cost 0 S 0 1. Direct method combined with dual allocation. a. Variable costs b. Fixed costs c. Total costs allocated Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Req 1C Direct method combined with dual allocation for fixed costs. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Production Departments Provider of Service Machining Assembly HR Maintenance CAD Total fixed cost $ 0 Problem 17-25 Part 1 1. Direct method combined with dual allocation. a. Variable costs b. Fixed costs c. Total costs allocated Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Direct method combined with dual allocation for total costs allocated. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Machining Assembly Variable costs Fixed costs Total costs 0 $ Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Req 2C Step-down method combined with dual allocation for variable costs. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Service Departments Production Departments HR Maintenance CAD Machining Assembly S 0 S 0 Total variable cost allocated to each department $ 0 0 Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Req 2C Step-down method combined with dual allocation for fixed costs. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Service Departments Production Departments HR Maintenance CAD Machining Assembly 0 $ 0 Total fixed cost allocated to each department $ 0 Complete this question by entering your answers in the tabs below. Req 2A Req 28 Req 2C Step-down method combined with dual allocation for total costs allocated. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Machining Assembly Variable costs Fixed costs Total costs 0 $ 0
