Problem 17-25 Dual Allocation of Service Department Costs (LO 17-1, 17-2)

[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 Computer Aided Design (CAD). The usage of these service departments output during the year just completed is as follows:

Provision of Service Output (in hours of service) Provider of Service User of ServiceHR Maintenance CAD HR Maintenance 1,500 CAD 1,500 1,500 Machining 3,000 2,500 4,500 Assembly 4,000 3,500 1,500 Total 10,000 7,500 6,000

The budgeted costs in Tampa Instrument Companys service departments during the year are as follows:

HR Maintenance CADVariable$53,000 $81,000 $53,000 Fixed 220,000 160,000 360,000 Total$273,000 $241,000 $413,000

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 ServiceHR Maintenance CAD HR Maintenance 500 CAD 3,000 1,500 Machining 2,500 4,500 4,800 Assembly 4,000 1,500 1,200 Total 10,000 7,500 6,000

Required: 1(A) Direct method combined with dual allocation for variable costs.

Provider of ServiceMachiningAssemblyHR Maintenance CAD Total Variable Cost

1(B) Direct method combined with dual allocation for fixed costs.

Provider of ServiceMachiningAssemblyHR Maintenance CAD Total Variable Cost

1(C) Direct method combined with dual allocation for total costs allocated.

Provider of ServiceMachiningAssemblyVariable Costs Fixed Costs Total Costs

Please provide the answers in the fields of the boxes . Thanks