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