A company has two service departments, Human Resources (HR) and Information Technology (IT). The HR department...

 

Transcribed Image Text:

A company has two service departments, Human Resources (HR) and Information Technology (IT). The HR department costs of $150.000 are allocated on the basis of the number of employees. The IT department costs of $200,000 are allocated based on the IT service hours. The costs of operating department X and Y are $250,000 and $180,000, respectively. Data on budgeted number of employees and IT service hours are shown below. Service Department Operating Department Budgeted costs Budgeted IT hours Number of employees. O $52,174 O $85,714 Question 3 of 10 $80,000 O $83,721 Service Department HR $150,000 NA 20 $200,000 400 NA Under the direct method, what amount of IT department costs will be allocated to Department Y? Operating Department $250,000 450 120 $180,000, 300 90 A company has two service departments, Human Resources (HR) and Information Technology (IT). The HR department costs of $150.000 are allocated on the basis of the number of employees. The IT department costs of $200,000 are allocated based on the IT service hours. The costs of operating department X and Y are $250,000 and $180,000, respectively. Data on budgeted number of employees and IT service hours are shown below. Service Department Operating Department Budgeted costs Budgeted IT hours Number of employees. O $52,174 O $85,714 Question 3 of 10 $80,000 O $83,721 Service Department HR $150,000 NA 20 $200,000 400 NA Under the direct method, what amount of IT department costs will be allocated to Department Y? Operating Department $250,000 450 120 $180,000, 300 90 A company has two service departments, Human Resources (HR) and Information Technology (IT). The HR department costs of $150.000 are allocated on the basis of the number of employees. The IT department costs of $200,000 are allocated based on the IT service hours. The costs of operating department X and Y are $250,000 and $180,000, respectively. Data on budgeted number of employees and IT service hours are shown below. Service Department Operating Department Budgeted costs Budgeted IT hours Number of employees. O $52,174 O $85,714 Question 3 of 10 $80,000 O $83,721 Service Department HR $150,000 NA 20 $200,000 400 NA Under the direct method, what amount of IT department costs will be allocated to Department Y? Operating Department $250,000 450 120 $180,000, 300 90

Answer rating: 100% (QA)

The image displays a question about cost allocation in a company with two service departments Human ... View the full answer