15. (10 points) Hi-Tech Fiberglass has two support departments, Plant Maintenance and Data Processing. Hi-Tech has...

Transcribed Image Text:

15. (10 points) Hi-Tech Fiberglass has two support departments, Plant Maintenance and Data Processing. Hi-Tech has two operating departments Machining and Capping. The following data from the current year ended: Maintenance Hours CPU Costs $350,000 Plant Maintenance n/a 500 Data Processing $ 75,000 3,500 n/a $225,000 5,000 3,600 Machining Capping $125,000 7,500 900 a. Using the direct method, what are the support department costs allocated to the operating departments Machining and Capping, respectively (round intermediate calc's to four decimals). b. Using the percentage of their services rendered to the other support departments, calculate the percentage of support department services rendered and rank the support department to be allocated first when using the step-down method (round intermediate calc's to four decimals). c. Independent of the answer in part b., using the step-down method, what is the allocation of support department costs to the operating departments Machining and Capping respectively, allocating the Data Processing department first? (round intermediate calc's to four decimals). 15. (10 points) Hi-Tech Fiberglass has two support departments, Plant Maintenance and Data Processing. Hi-Tech has two operating departments Machining and Capping. The following data from the current year ended: Maintenance Hours CPU Costs $350,000 Plant Maintenance n/a 500 Data Processing $ 75,000 3,500 n/a $225,000 5,000 3,600 Machining Capping $125,000 7,500 900 a. Using the direct method, what are the support department costs allocated to the operating departments Machining and Capping, respectively (round intermediate calc's to four decimals). b. Using the percentage of their services rendered to the other support departments, calculate the percentage of support department services rendered and rank the support department to be allocated first when using the step-down method (round intermediate calc's to four decimals). c. Independent of the answer in part b., using the step-down method, what is the allocation of support department costs to the operating departments Machining and Capping respectively, allocating the Data Processing department first? (round intermediate calc's to four decimals).

Answer rating: 100% (QA)

Machining Capping 5000 04000 3600 08000 Support Departments Data Plant Allocations maintenance Proce... View the full answer