Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (purchasing...

 

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Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Total Labor Hours Used by Departments Sourcing Sourcing Operations Operations 20,000 Assembly Finishing 10,000 40,000 60,000 60,000 50,000 The costs incurred in the plant are as follows: Departments Sourcing Operations. Assembly Finishing Total Required: Departmental Costs $ 210,000 280,000 440,000 285,000 $ 1,215,000 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Total Service Department Cost Allocated Total Production Cost a. Direct Method Assembly L Finishing hd 3 33.34 points Skipped eBook Print References Departments Sourcing Operations Assembly Finishing Total Required: Costs $ 210,000 280,000 440,000 285,000 $ 1,215,000 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) a. Direct Method Assembly Finishing b. Step Method Assembly Finishing c. Reciprocal Method Assembly Finishing Total Service Department Cost Allocated Total Production Cost Check my work Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Total Labor Hours Used by Departments Sourcing Sourcing Operations Operations 20,000 Assembly Finishing 10,000 40,000 60,000 60,000 50,000 The costs incurred in the plant are as follows: Departments Sourcing Operations. Assembly Finishing Total Required: Departmental Costs $ 210,000 280,000 440,000 285,000 $ 1,215,000 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Total Service Department Cost Allocated Total Production Cost a. Direct Method Assembly L Finishing hd 3 33.34 points Skipped eBook Print References Departments Sourcing Operations Assembly Finishing Total Required: Costs $ 210,000 280,000 440,000 285,000 $ 1,215,000 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) a. Direct Method Assembly Finishing b. Step Method Assembly Finishing c. Reciprocal Method Assembly Finishing Total Service Department Cost Allocated Total Production Cost Check my work