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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
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 IT HR 0 16 $ 150,000 $ 247,500 a. The order of allocation starts with IT. b. The order of allocation starts with HR. 1,500 0 Publishing 2,400 24 $ 430,000 Required: Use the step method to allocate the service costs, using the following: Binding 2,100 40 $ 390,000 15: a. The order of allocation starts with IT. b. The order of allocation starts with HR. Complete this question by entering your answers in the tabs below. Required A Required Use the step method to allocate the service costs, using the following: The order of allocation starts with HR. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. From: Service department costs HR IT Total costs HR Cost Allocation To: IT < Required A Publishing Binding Required > a. The order of allocation starts with IT. b. The order of allocation starts with HR. Complete this question by entering your answers in the tabs below. Required A Use the step method to allocate the service costs, using the following: The order of allocation starts with IT. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Required B From: Service department costs IT HR Total costs IT Cost Allocation To: HR Required A Publishing Binding Required 8 >
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