Answered step by step
Verified Expert Solution
Question
1 Approved Answer
[The following information applies to the questions displayed below.] Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and
[The following information applies to the questions displayed below.] Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Department Machining Direct Costs $100,000 Maintenance Proportion of Services Used by Cafeteria Machining Assembly Assembly Maintenance Cafeteria 66,400 41,200 33,000 0.2 0.6 0.5 0.2 - 0.3 0.2 value: 10.00 points Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.) Total Costs Machining Assembly Required information University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel Machine-hours Labor-hours 1,200 Department direct costs 650 $ 3,000 $13,000 Printing 1,200 650 $14,400 Developing 3,600 2,600 $11,500 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Service department costs Maintenance allocation Maintenance Personnel Printing Developing Personnel allocation Total costs allocated $ 0 $ 0 $ 0 $ 0 Frank's Foods has a warehouse that supplies products to its store locations. The warehouse has two service departments, Information Services (S1) and Operation Support (S2), and two operating departments, Order Processing (P1) and Delivery (P2). As an internal auditor, you are checking the company's procedures for cost allocation. You find the following cost allocation results for September: Costs allocated to P1 Costs allocated to P2 $45,000 from $1 ? from S2 ? from $1 $22,500 from S2 Total costs for the two service departments are $105,000. Operation Support's services are provided as follows: 50 percent to Order Processing. 30 percent to Delivery. The direct method of allocating costs is used. Required: a. What are the total service department costs (S1 + S2) allocated to P2? (Do not round intermediate calculations.) Total allocated to P2 b. Complete the following: (Do not round intermediate calculations.) From Information services Operation support $ Order Processing 45,000 Delivery $ 22,500 c. What proportion of S1's costs were allocated to P1 and P2? P1 P2 Allocation of S1's costs % % %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started