A company in Santa Clara would like to allocate costs Incurred In two service departments -...
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A company in Santa Clara would like to allocate costs Incurred In two service departments - Information Systems and Facilities. The two production departments, A and B, are supported by the two service departments. The source and usage of the service department are summarized as follows: To Information Total Labor Department A 1,eee 6ee From Systems Facilities Department a 9,000 Hours Information Systems 5,e00 15,800 2,000 Facilities 400 1,800 The costs originally Incurred In Information Systems are $162,000, and the costs originally Incurred In Facilites are $67,000. Required: Calculate the total amount of Information Systems and Faclities department costs allocated to production departments using the reciprocal method. (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.) Total service costs allocated to costs allocated Department A Total service to Department B The Reciprocal Method A company in Santa Clara would like to allocate costs Incurred In two service departments - Information Systems and Facilities. The two production departments, A and B, are supported by the two service departments. The source and usage of the service department are summarized as follows: To Information Total Labor Department A 1,eee 6ee From Systems Facilities Department a 9,000 Hours Information Systems 5,e00 15,800 2,000 Facilities 400 1,800 The costs originally Incurred In Information Systems are $162,000, and the costs originally Incurred In Facilites are $67,000. Required: Calculate the total amount of Information Systems and Faclities department costs allocated to production departments using the reciprocal method. (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.) Total service costs allocated to costs allocated Department A Total service to Department B The Reciprocal Method
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Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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