A) Waltz Corporation has two service departments: Data Processing and Administration/Personnel. The

company also has three divisions: X, Y, and Z. Data Processing costs are allocated based on hours of use

and Administration/Personnel costs are allocated based on number of employees.

Department

Direct costs

Employees

Hours of use

Administration/Personnel

P400,000

10

3,300

Data Processing

850,000

5

1,100

X

450,000

30

1,800

Y

300,000

15

2,200

Z

550,000

25

4,500

Assume that Data Processing provides more service than Administration/Personnel.

DETERMINE THE TOTAL COST OF DIVISION X, Y AND Z after allocation of service departments' costs

USING THE FOLLOWING METHODS:

1. Direct Method

2. Step Method

3. Algebraic Method

Answer rating: 100% (QA)

Okay here are the calculations using the three different allocation methods 1 Direct Method Division ... View the full answer