Question
Tylor Company has two service departments and two production departments. Information on annual manufacturing overhead costs and cost driversfollows: Service departmentsproduction departments ItemS1S2P1P2 Overhead costs
Tylor Company has two service departments and two production departments. Information on annual manufacturing overhead costs and cost driversfollows:
Service departmentsproduction departments
ItemS1S2P1P2
Overhead costs 3000045000110000210000
Direct labor hours 120020005002500
Number of square feet 600130028004200
The company allocates service department costs using the sequential method.First, S1 costs are allocated on the basis of direct labor hours.Next, S2 costs are allocated on the basis of square footage. The square footage for S1 is assumed to be zero for this purpose.
Requirement
Determine the total overhead costs allocated to each of the two production departments. (Round ratio calculations to five decimalplaces, .XXXXX, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Complete all answerboxes.)
Sequential MethodS1S2P1P2
Costs()()()()
Allocation of S1 costs ()()()()
()()
Allocation of S2 costs ()()()
Closing balance ()()()
Please Fill the boxes and explain to me how you get them . thanks
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