Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Store has two service departments: Warehouse Department costs of $350,000 are allocated on the basis of budgetod warehouse-hours. Data Center Department costs of $150,000 are

image text in transcribed
image text in transcribed
Store has two service departments: Warehouse Department costs of $350,000 are allocated on the basis of budgetod warehouse-hours. Data Center Department costs of $150,000 are allocated based on the number of computer log-on hours. The costsf operating departments Music and Books are $250,000 and $300,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows Support Departments Warehouse Data Center Musie Books $250,000 $300,000 costs 350,000 $150,000 hours 2001,000 1,000 Using the direct method, allocate the service department costs to the operating departments. Cost allocated to Cost allocated to Music Books Dep Warehouse Dep. (S350,000) Data Center Dep. ($150,000) TOTAL: b. Using the step-down method, and assuming Warehouse department is allocated first, allocate the service department costs to the operating departments Cost allocated toCost allocated to Cost allocated to Cost allocated to p.Data Center Dep. Musie Dep.Books Dep Warehouse. ($350,000) Data Center (S TOTA e. Using the reciprocal allocation method; ) Setup the simultancous equations and find the complete reciprocated costs of service departments Allocate the c ated costs youlu . reci Cost allocated to Music Dep. Books Dep

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting And Control Systems An Organizational And Sociological Approach

Authors: Norman B. Macintosh, Paolo Quattrone

2nd Edition

0470714476, 978-0470714478

More Books

Students also viewed these Accounting questions