Question: Balantine Corporation has two operating divisions - Eastern Sales and Western Sales and two support divisions - Human Resources and IT. Each operating division operates

Balantine Corporation has two operating divisions - Eastern Sales and Western Sales and two support divisions - Human Resources and IT. Each operating division operates independently. Balantine uses number of employees to allocate Admin costs and processing time to allocate costs. The following data are available for the month.

SUPPORT DEPTOPERATING DEPT HR IT Eastern Sales Western Sales

Budgeted cost incurred before any interdivision allocations $60,000 $75,000 $525,000 $225,000

HR budgeted # of employees 15 30 20

IT budgeted processing time in minutes) 125 1,000 875

Using the reciprocal method, allocate the support department costs

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The reciprocal method of cost allocation recognizes the mutual services provided among all departmen... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Imagine that you are a manager in a commercial printing company, and you have found a good deal on the ink that your company uses most frequently from a supplier in Japan. Analyze a commercial...

We have learned the following about a group that likes to eat salmon: 60% of this group are women, the rest are men. Among the women who like to eat salmon, 70% also like to eat it sushi. Among the...

Consider E-books again. The controller of E-books reads a widely used textbook that states the reciprocal method is conceptually the most defensible. He seeks your assistance. In exercise E-books, an...

E-books, an online book retailer, has two operating divisionsCorporate Sales and Consumer Salesand two support divisionsHuman Resources and Information Systems. Each sales division conducts...

Porter Handcraft is a manufacturer of picture frames. Porter has two operating divisions Eastern Sales and Western Sales and two support divisions Engineering and Information Systems. Each operating...

please help me thanks \fPorter Handcraft is a manufacturer of picture frames. Porter has two operating divisions - Eastern Sales and Western Sales - and two support divisions - Engineering and...

bst Vision Books, an online book retailer, has two operating divisions corporate sales and consumer sales and two support divisions-human resources and information systems. Each sales division...

Homework: Assignment 2(Ch 14) Score: 0.36 of 1 pt 6 of 8 (7 complete) Exercise 14-24 (similar to) HW Score: 37 87%, 3.03 of 8 pts Question Help Best Books, an online book retter, has two operating...

E-books, an online book retailer, has two operating divisions corporate sales and consumer sales and two support divisions-human resources and information systems. Each sales division conducts...

Best Books , an online book retailer, has two operating divisionslong dashcorporate sales and consumer saleslong dashand two support divisionslong dashhuman resources and information systems. Each...

O- books, an online book retailer, has two operating divisionslong dashcorporate sales and consumer saleslong dashand two support divisionslong dashhuman resources and information systems. Each sales...

The automotive revolution after World War II reduced the time involved for travel and shipping goods. This innovation allowed the U.S. economy to produce more goods and services since it freed...

Select the best answer to the following multiple-choice questions: 1. Which of the following statements is correct concerning a governmental entitys combined statement of cash flows? a. Cash flows...

( 1 point ) Solve the initial value problem y ' ' - 6 y ' + 9 y = 0 y ( 0 ) = 6 y ' ( 0 ) = 0

Multiple Choice Questions 1. All of the following are objectives of internal control except a. To comply with legal requirements. b. To maximize net income. c. To ensure accurate and reliable...

The actual cash received from cash sales was $71,315, and the amount indicated by the cash register total was $71,220. Journalize the entry to record the cash receipts and cash sales?

A former chairman, CFO, and controller of Donnkenny, Inc., an apparel company that makes sportswear for Pierre Cardin and Victoria Jones, pleaded guilty to financial statement fraud. These managers...

Pacific Bank provides loans to businesses in the community through its Commercial Lending Department. Small loans (less than $100,000) may be approved by an individual loan officer, while larger...

The actual cash received from cash sales was $18,371, and the amount indicated by the cash register total was $18,400. Journalize the entry to record the cash receipts and cash sales?

According to the livescience article on science and the scientific method, the _______ must be testable and falsifiable. Group of answer choices science observation theory hypothesis

A company reports the following: Income before income tax ...... $10,000,000 Interest expense ......... 800,000 Determine the number of times interest charges are earned.

Why do some accountants prepare an end-of-period spreadsheet?

The following data were extracted from the accounting records of Danhof Company for the year ended June 30, 2012: Merchandise inventory, July 1, 2011 $ 250,000 Merchandise inventory June 30, 2012...

Why is it necessary to deal with probability densities rather than probabilities such as P(X = a) when the variable under consideration is continuous?

Suppose that the face value of a playing card is regarded as a random variable, with an ace counting as 1 and any face card (Jack, Queen, King) counting as 10. You draw one card at random from a...

The density function of X is given by the rule x for 0