Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ralph Co. has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of

Ralph Co. has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of $30,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $4,500 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are $9,000 and $15,000, respectively. Data on standard service hours and number of employees are as follows:

MD PD P1 P2
Standard service hours used 100 50 300 150
Number of employees 10 20 90 90
Direct labor hours 50 50 250 250

Using the sequential method, the support department with the higher percentage of interdepartmental service is allocated first.

Please fill in blanks (including commas in your answers).

The costs allocated from MD to PD are ___$____.

The costs allocated from PD to MD are ___$____.

The total costs allocated from the support departments to Department P1 are ____$____.

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

Students also viewed these Accounting questions

Question

Provide examples of how technology has changed your life.

Answered: 1 week ago