Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR),...

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Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR), Legal, and Testing. In the most recent period, the following costs and service department usage ratios were recorded: Supplying Department Human Resources Legal Testing Direct cost Required: Human Resources Legal Using Department Testing Domestic Global 0 15% 10% 10% 0 0 25% 30% 50% 60% 10% 0 0 45% 45% $ 264,500 $ 190,000 $ 90,000 $ 554,000 $ 503,000 Allocate the service department costs to the two operating departments using the reciprocal method. Note: Do not round intermediate calculations. From: Costs Allocated to: Domestic Global Human Resources $ 264,500 $ 554,000 $ 503,000 Legal 119,385 X 67,962X 134,615 Testing 179,077 264,500 264,500 Total $ 886,462 $ 902,115 "Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR), Legal, and Testing. In the most recent period, the following costs and service department usage ratios were recorded: Supplying Department Human Resources Legal Testing Direct cost Required: Human Resources Legal Using Department Testing Domestic Global 0 15% 10% 10% 0 0 25% 30% 50% 60% 10% 0 0 45% 45% $ 264,500 $ 190,000 $ 90,000 $ 554,000 $ 503,000 Allocate the service department costs to the two operating departments using the reciprocal method. Note: Do not round intermediate calculations. From: Costs Allocated to: Domestic Global Human Resources $ 264,500 $ 554,000 $ 503,000 Legal 119,385 X 67,962X 134,615 Testing 179,077 264,500 264,500 Total $ 886,462 $ 902,115 "Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

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To allocate the service department costs to the two operating departments using the reciprocal metho... View the full answer