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 IT Accounting 0% HR West East Accounting 0% 20% 0% HR 10% 10% 40% 40% 40% 60% 60% 20% The direct costs of the service departments in the previous period were $91,500 for IT, $118,000 for Accounting, and $160,000 for HR. Required: Use the direct method to allocate the service department costs to the production departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Service department costs IT allocation Accounting allocation HR allocation IT Accounting HR West East Total costs allocated $ 0 $ 0 $ 0 $ 0 $ 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 IT Accounting 0% HR West East Accounting 0% 20% 0% HR 10% 10% 40% 40% 40% 60% 60% 20% The direct costs of the service departments in the previous period were $91,500 for IT, $118,000 for Accounting, and $160,000 for HR. Required: Use the direct method to allocate the service department costs to the production departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Service department costs IT allocation Accounting allocation HR allocation IT Accounting HR West East Total costs allocated $ 0 $ 0 $ 0 $ 0 $ 0

Answer rating: 100% (QA)

Answer The direct method allocates the service department costs directly to the production departmen... View the full answer