Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments...

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Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR IT -- Accounting allocation Total costs allocated 0% 10% Service department costs HR allocation IT allocation Accounting 0% 10% The direct costs of the service departments in the previous period were $88,500 for IT, $106,000 for Accounting, and $130,000 for HR. Required: Use the step method to allocate the service department costs to the two production departments. Allocate HR costs first, followed by IT, and then Accounting. Note: Amounts to be deducted should be indicated by a minus sign. $ HR 20% 0% IT West East 40% 40% 60% 20% 40% 60% 0 $ Accounting 0 $ HR 0 $ West 0 $ East 0 Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR IT -- Accounting allocation Total costs allocated 0% 10% Service department costs HR allocation IT allocation Accounting 0% 10% The direct costs of the service departments in the previous period were $88,500 for IT, $106,000 for Accounting, and $130,000 for HR. Required: Use the step method to allocate the service department costs to the two production departments. Allocate HR costs first, followed by IT, and then Accounting. Note: Amounts to be deducted should be indicated by a minus sign. $ HR 20% 0% IT West East 40% 40% 60% 20% 40% 60% 0 $ Accounting 0 $ HR 0 $ West 0 $ East 0

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To allocate the service department costs to the two production departments using the step method Ste... View the full answer