Required information [The following information applies to the questions displayed below.) Fifth Street Publishing (FSP) was founded many years ago as a printing cooperative offering printing services to members. Most members were charitable and religious organizations. Ten years ago, FSP became a for-profit corporation, although it retained its commitment to the original member groups. It has two production departments, Member and Commercial. The Member Department handles printing jobs for nonprofit groups and Commercial serves the remaining customers. FSP is organized this way to facilitate its billing: FSP charges nonprofit customers a price equal to the full cost of the job, including allocated overhead; commercial jobs are priced based on what the market will bear. FSP has two service departments, Accounting and Computer Services (CS). Accounting costs are allocated based on number of employees, and CS costs are allocated based on computer time (hours). Selected percentage use data follow: Using Department Computer Commercial Accounting Services 10% Supplying Department Accounting (emplayees) Computer Services (hours) Direct cost Hember 10% ex 60% $9,000 sex 30% 10% $37,000 $340,000 $140,000 Required: a. Suppose FSP allocated service department costs using the direct method. What is the amount of service department costs that will be allocated to each of the production departments? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Commercial Member Department Total Department Accounting Computer services Total Help Seve &E Required information (The following information applies to the questions displayed below) Fifth Street Publishing (FSP was founded many years ago as a printing cooperative offering printing services to members. Most members were charitable and religious organtzations. Ten years ago, FSP became a for-profit corporation, although it retained its commitment to the original member groups. It has two production departments, Member and Commercial. The Member Department handles printing jobs for nonprofit groups and Commercial serves the remaining customers. FSP is organized this way to facilitate its billing: FSP charges nonprofit customers a price equal to the full cost of the job, including allocated overhead, commercial jobs are priced based on what the market will bear. FSP has two service departments, Accounting and Computer Services (CS). Accounting costs are allocated based on number of employees, and CS costs are allocated based on computer time (hours). Selected percentage use data follow Using Depertnent Computer Accounting Services Supplying Department Accounting (employees) Computer Services (hours) Direct cost Meeber Commencial iex 10% ex $37,000 $9,000 $340,000 $140,000 b. Suppose that, after reviewing the results, the controller tells the cost accountant to change the percentage of computer time so 40 percent is shown as used by the Member Department and 50 percent is shown as used by the Commercial Department. Would this be ethical? Yes or No No Yes Help Seve & E Required infomation c. Suppose the controller tells the cost accountant to use employee wages instead of number of employees to allocate accounting department cost. Employees in the Commercial Department earn lower salaries. Based on the above assumption, choose the correct statementts) from below (Select all thet apply) Check All That Apply If it is done simply to shift cost to the one department, It seems to be unethical. If it is done simply to shift cost to the one department, it doesn't seem to be unethical. If the accounting staff has more peperwork because of the higher wages, then this request is unethicel If the accounting staff has more paperwork because of the higher wages, then this request is not unethical
