Allocate the service department costs using the reciprocal

Assignment Help Accounting Basics

Reference no: EM13578312

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			Printing			Developing
Machine-hours			?			624			912			3,264
Labor-hours			208			?			240			1,152
Department direct costs		$	11,000		$	22,000		$	34,000		$	19,000

Required:

Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (Note: Due to rounding, the costs allocated to the various departments may not add up to the total service department costs being allocated.) (Do not round intermediate calculations. Round final answers to the nearest dollar amount. Leave no cells blank - be certain to enter "0" wherever required. Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

	Cost Allocation To:
From:	Maintenance	Personnel	Printing	Developing
Service department costs	$	$	$	$
Maintenance
Personnel

Total	$	$	$	$

Reference no: EM13578312

Questions Cloud

2011 the company issued 1000 5-year 1000 face value bonds : use the below facts for each of years 201020112012 and 2013 to compute basic eps and diluted eps for 2013.2010 a

Chambers company produces blankets from its accounting : chambers company produces blankets. from its accounting records it prepares the following schedule and financial

The monthly average sales of the smiling ninja computer : question 1the monthly average sales of the smiling ninja computer company may be approximated to a normal distribution

What is the minimum forecast for the percent change in the : a panel of economists provided forecasts of the u.s. economy for the first six months of 2007 the wall street journal

Allocate the service department costs using the reciprocal : university printers has two service departments maintenance and personnel and two operating departments printing and

Required assuming the company produced and sold 5000 units : the cost accountant for the larsen manufacturing co. has provided you with the following information for the month of

Show a frequency distribution and percent frequency : the higher education research institute at ucla provides statistics on the most popular majors among incoming college

Calculate operating income if the selling price is raised : miller metal company makes a single product that sells for 32 per unit. variable costs are unit abd fixed costs total

Lots corporation uses the accounts receivable aging method : lots corporation uses the accounts receivable aging method to account for uncollectible accounts expense. as of

User Account

All Pages