Tech Books, an online book retailer, has two operating departments-corporate sales and consumer sales-and two support...
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Tech Books, an online book retailer, has two operating departments-corporate sales and consumer sales-and two support departments-human resources and information systems. (Click the icon to view additional information.) The following data are available for September 2020: (Click the icon to view the data.) (Click the icon to view the direct allocation data.) (Click the icon to view the step-down allocation data.) Read the requirements. ----- department cost allocations. Requirement 2. Allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. Before we can allocate the support departments' costs to the two operating departments using the reciprocal method, let's first determine the linear equations for each support department. Then off-line solve for HR and IS (Information Systems), so that you may complete the allocation of the support departments' costs. (Abbreviations used: HR = human resources; IS = information system.) HR= $80,000 0.10000 IS IS= $229,000+ 0.20000 HR Now allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. (Round proportions to five decimal places, .XXXXX, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for zero balances.) Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments Direct allocation data Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments Step-down allocation data Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments Support Deparments Operating Departments HR Info. Systems Corporate Consumer Total 80000 Points: 0.11 of 1 The following data are available for September 2020: Support Departments HR $ Info. Systems Corporate 80,000 $ 229,000 $ 991,000 $ (80,000) Operating Departments Consumer Total Data table 485,000 $ 1,785,000 (229,000) 48,000 160,300 32,000 68,700 0 $ 0 $ 1,199,300 $ 585,700 $ 1,785,000 A B C D SUPPORT DEPARTMENTS OPERATING DEPARTMENTS Save Human Information Corporate Consumer Resources Systems Sales Sales Budgeted costs incurred before any X interdepartment cost allocations 80,000 $ 229,000 $ 991,000 $ 485,000 Support work supplied by human resources department Support Departments Operating Departments Budgeted number of HR Info. Systems Corporate Consumer $ 80,000 $ (80,000) Total 229,000 $ 991,000 $ 485,000 $ 1,785,000 16.000 38,400 employees 0 20 48 32 Support work supplied by 25,600 information systems department 0 245.000 (245,000) Budgeted processing time (in minutes) 400 2,520 1,080 171,500 73.500 0 $ 1,200,900 $ 584,100 $1,785,000 *Proportions for services provided to other support departments: human resources (HR), 0.20000; information sytems (IS), 0.10000. Print Done Tech Books, an online book retailer, has two operating departments-corporate sales and consumer sales-and two support departments-human resources and information systems. (Click the icon to view additional information.) The following data are available for September 2020: (Click the icon to view the data.) (Click the icon to view the direct allocation data.) (Click the icon to view the step-down allocation data.) Read the requirements. ----- department cost allocations. Requirement 2. Allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. Before we can allocate the support departments' costs to the two operating departments using the reciprocal method, let's first determine the linear equations for each support department. Then off-line solve for HR and IS (Information Systems), so that you may complete the allocation of the support departments' costs. (Abbreviations used: HR = human resources; IS = information system.) HR= $80,000 0.10000 IS IS= $229,000+ 0.20000 HR Now allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. (Round proportions to five decimal places, .XXXXX, and your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for zero balances.) Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments Direct allocation data Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments Step-down allocation data Costs incurred Allocation of HR costs Allocation of Info. Systems costs Total budgeted costs of operating departments Support Deparments Operating Departments HR Info. Systems Corporate Consumer Total 80000 Points: 0.11 of 1 The following data are available for September 2020: Support Departments HR $ Info. Systems Corporate 80,000 $ 229,000 $ 991,000 $ (80,000) Operating Departments Consumer Total Data table 485,000 $ 1,785,000 (229,000) 48,000 160,300 32,000 68,700 0 $ 0 $ 1,199,300 $ 585,700 $ 1,785,000 A B C D SUPPORT DEPARTMENTS OPERATING DEPARTMENTS Save Human Information Corporate Consumer Resources Systems Sales Sales Budgeted costs incurred before any X interdepartment cost allocations 80,000 $ 229,000 $ 991,000 $ 485,000 Support work supplied by human resources department Support Departments Operating Departments Budgeted number of HR Info. Systems Corporate Consumer $ 80,000 $ (80,000) Total 229,000 $ 991,000 $ 485,000 $ 1,785,000 16.000 38,400 employees 0 20 48 32 Support work supplied by 25,600 information systems department 0 245.000 (245,000) Budgeted processing time (in minutes) 400 2,520 1,080 171,500 73.500 0 $ 1,200,900 $ 584,100 $1,785,000 *Proportions for services provided to other support departments: human resources (HR), 0.20000; information sytems (IS), 0.10000. Print Done
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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