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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 HR Publishing Binding
IT tickets 0 1,400 1,400 4,200
Employees 32 0 40 56
Department direct costs $ 156,000 $ 247,500 $ 430,000 $ 390,000

Required:

Use the direct method to allocate these service department costs to the operating departments.

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Woodstock BIndlng 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 perlod: Required: Use the direct method to allocate these service department costs to the operating departments. Note: Amounts to be deducted should be Indlcated by a minus sign. Do not round Intermedlate calculatlons. Round "Publlshing" and "Binding" answers to 2 decimal places

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