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Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate
Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs Required: IT HR 0 23 1,300 0 Publishing 1,300 31 Binding 3,900 47 $ 157,000 $ 247,500 $ 430,000 $ 390,000 Use the direct method to allocate these service department costs to the operating departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round "Publishing" and "Binding" answers to 2 decimal places. Service department costs IT allocation IT HR Publishing Binding HR allocation Total costs allocated $ 0 $ 0 $ 0.00 $ 0.00 Required information [The following information applies to the questions displayed below.] Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Proportion of Services Used by Direct Costs Repair Quality Control Department Fabricating Finishing Repair Quality Control $ 147,600 112,200 48,300 Fabricating Finishing 0 0.2 0.5 0.3 90,300 0.6 0 0.2 0.2 Required: Compute the allocation of service department costs to producing departments using the direct method. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Fabricating Finishing Total Allocated Costs
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