Q1 Required information 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 Service HR Maintenance CAD HR Maintenance 1,000 CAD 1,000 1,000 Machining 3,000 2,000 4,000 Assembly 5,000 3,000 2,000 Total 10,000 6,000 6,000 The budgeted costs in Tampa Instrument Company's service departments during the year are as follows: HR Variable $ 65,000 Fixed 240,000 Total $305,000 Maintenance CAD $ 80,000 $ 65,000 228,000 310,000 $308,000 $375,000 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 Service HR Maintenance CAD HR Maintenance 500 CAD 1,500 400 Machining 3,000 4,000 4,500 Assembly Total 5,000 10,000 1,600 6,000 1,500 6,000 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. Problem 17-25 Part 2 1. 2. Step-down method combined with dual allocation. 2. a. Variable costs 3. b. Fixed costs 4. c. Total costs allocated Q2 Required information 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 Service HR Maintenance CAD HR Maintenance 1,000 CAD 1,000 1,000 Machining 3,000 2,000 4,000 Assembly 5,000 3,000 2,000 Total 10,000 6,000 6,000 The budgeted costs in Tampa Instrument Company's service departments during the year are as follows: HR Variable $ 65,000 Fixed 240,000 Total $305,000 Maintenance CAD $ 80,000 $ 65,000 228,000 310,000 $308,000 $375,000 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 Service HR Maintenance CAD HR Maintenance 500 CAD 1,500 400 Machining 3,000 4,000 4,500 Assembly 5,000 1,600 1,500 Total 10,000 6,000 6,000 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. Problem 17-25 Part 1 1. 1. Direct method combined with dual allocation. 2. a. Variable costs 3. b. Fixed costs 4. c. Total costs allocated Q3 Required information Problem 17-30 Joint Cost Allocation; Missing Data (LO 17-4) [The following information applies to the questions displayed below.] Berger Company manufactures products Delta, Kappa, and Omega from a joint process. Production, sales, and cost data for July follow. Units produced Delta 5,700 Kappa 3,020 Omega 1,680 Total 10,400 Joint cost allocation $ 66,600 ? ? $ 94,000 Sales value at split? ? $27,750 $185,000 off Additional costs if $ 8,700 $ 6,700 $ 4,700 $ 20,100 processed further Sales value if $155,000 $67,500 $62,500 $285,000 processed further Problem 17-30 Part 1 Required: 1. Assuming that joint costs are allocated using the relative-sales-value method, what were the joint costs allocated to products Kappa and Omega? (Do not round intermediate calculations.) Part 2 Assuming that joint costs are allocated using the relative-sales-value method, what was the sales value at split-off for product Delta? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Part 3 3. Use the net-realizable-value method to allocate the joint production costs to the three products. (Round the calculation of "Relative Proportion" to the nearest whole percent. Round your final answers to the nearest dollar amount.) Q4 Exercise 17-17 Direct Method of Service Department Cost Allocation; Bank (LO 17-1) Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The bank has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the two service departments' output for the year is as follows: User of Service HR Computing Deposit Loan Provider of Service HR Computing 25% 10% 60% 45% 30% 30% The budgeted costs in the two service departments for the year are as follows: HR Computing $ 159,000 237,500 Required: Use the direct method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. (Do not round intermediate calculations.) Q5 ercise 17-16 Step-Down Method of Service Department Cost Allocation; College (LO 17-1) Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows: Provider of Service User of Service Library Computing Services Library 20% Computing Services Liberal Arts 45% 30% Sciences 55% 50% The budgeted costs in the two service departments for the year are as follows: Library $1,050,000 Computing Services 510,000 Required: 1. Use the step-down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences departments. (Do not round intermediate calculations.)