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Exercise 931 and 932 (Algo) [The following information applies to the questions displayed below.] Cranshaw Business Services (CBS) operates an information technology (IT) consulting firm out of two offices: Detroit and Los Angeles. Corporate services, such as legal, finance, and personnel, are centralized at the main office and the costs of these services are allocated to the two offices for the purposes of profitability assessment. The Detroit office is the original unit of the company and is well established, having long-time clients from the automotive and other manufacturing industries. The Los Angeles office is new with a smaller, much more varied, clientele. The costs of personnel services at CBS are currently allocated on the basis of the number of employees in each office. The annual costs of the personnel department total $370,000. Data for the fiscal year just ended show the following: Exercise 9-31 (Algo) Unitwide versus Department Allocation-Administrative (Service) Function (LO 9-2, 3) Required: a. Compute the cost allocated to each unit using the current allocation system. b. The manager of the Detroit office believes that Detroit gets little benefit from the personnel office other than the occasional hire and termination help. The manager asks the controller's office to estimate the amount of Personnel Department cost associated with routine prsonnel matters (benefits and so on) and those associated with hiring employees and assisting with departing Department for routine The controller responds that if they separated the overhead costs on this basis, the cost of the Personnel counts as one transition) is $162,000 Recompute the costs allocated to each unit using the separate rates for routine and transitional matters. [The following information applies to the questions displayed below.] Cranshaw Business Services (CBS) operates an information technology (IT) consulting firm out of two offices: Detroit and Los Angeles. Corporate services, such as legal, finance, and personnel, are centralized at the main office and the costs of these services are allocated to the two offices for the purposes of profitability assessment. The Detroit office is the original industries. The Los Angeles office is new with aving long-time clients from the automotive and other manufacturing CBS are currently allocated on the basis of the smaller, much more varied, clientele. The costs of personnel services at department total $370,000. Data for the fiscal year just ef employees in each office. The annual costs of the personnel Exercise 9-32 (Algo) Unitwide versus Department Allocation-Decision Making (LO 9-1, 2, 3) The manager of the Los Angeles office is now unhappy with the results of the controller's study. The manager asks the controller to manager that the costs would be as follows: a. The manager claims that the Los Angeles office should only be allocated the variable costs from this system, because the company would have to pay the fixed costs even if the Los Angeles office did not exist. Compute the cost allocated to each unit using the Exercise 931 and 932 (Algo) [The following information applies to the questions displayed below.] Cranshaw Business Services (CBS) operates an information technology (IT) consulting firm out of two offices: Detroit and Los Angeles. Corporate services, such as legal, finance, and personnel, are centralized at the main office and the costs of these services are allocated to the two offices for the purposes of profitability assessment. The Detroit office is the original unit of the company and is well established, having long-time clients from the automotive and other manufacturing industries. The Los Angeles office is new with a smaller, much more varied, clientele. The costs of personnel services at CBS are currently allocated on the basis of the number of employees in each office. The annual costs of the personnel department total $370,000. Data for the fiscal year just ended show the following: Exercise 9-31 (Algo) Unitwide versus Department Allocation-Administrative (Service) Function (LO 9-2, 3) Required: a. Compute the cost allocated to each unit using the current allocation system. b. The manager of the Detroit office believes that Detroit gets little benefit from the personnel office other than the occasional hire and termination help. The manager asks the controller's office to estimate the amount of Personnel Department cost associated with routine prsonnel matters (benefits and so on) and those associated with hiring employees and assisting with departing Department for routine The controller responds that if they separated the overhead costs on this basis, the cost of the Personnel counts as one transition) is $162,000 Recompute the costs allocated to each unit using the separate rates for routine and transitional matters. [The following information applies to the questions displayed below.] Cranshaw Business Services (CBS) operates an information technology (IT) consulting firm out of two offices: Detroit and Los Angeles. Corporate services, such as legal, finance, and personnel, are centralized at the main office and the costs of these services are allocated to the two offices for the purposes of profitability assessment. The Detroit office is the original industries. The Los Angeles office is new with aving long-time clients from the automotive and other manufacturing CBS are currently allocated on the basis of the smaller, much more varied, clientele. The costs of personnel services at department total $370,000. Data for the fiscal year just ef employees in each office. The annual costs of the personnel Exercise 9-32 (Algo) Unitwide versus Department Allocation-Decision Making (LO 9-1, 2, 3) The manager of the Los Angeles office is now unhappy with the results of the controller's study. The manager asks the controller to manager that the costs would be as follows: a. The manager claims that the Los Angeles office should only be allocated the variable costs from this system, because the company would have to pay the fixed costs even if the Los Angeles office did not exist. Compute the cost allocated to each unit using the