Question: (Please kindly do the step by step) - Thank you Question 1 FF corp. has 2 service departments, admin and accounting, and 2 operating departments,
(Please kindly do the step by step) - Thank you
Question 1
FF corp. has 2 service departments, admin and accounting, and 2 operating departments, east and west.
Admin costs are allocated based on employees.
Accounting costs are allocated based on transactions.
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 80,000 | 36,000 | 234,000 | 900,000 |
| Employees | 35 | 25 | 40 | |
| Transactions | 60,000 | 20,000 | 30,000 |
Using the direct method, how much accounting cost is assigned to the east department?
Question 2
FF corp. has 2 service departments, admin and accounting, and 2 operating departments , eat and west.
Admin cost are allocated based on employees.
Accounting cost are allocated based on transactions.
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 90,000 | 35,000 | 234,000 | 900,000 |
| Employees | 25 | 25 | 50 | |
| Transactions | 50,000 | 10,000 | 40,000 |
Using the direct method, how much accounting cost is assigned to admin?
Question 3
FF corp. has 2 service departments, admin and accounting, and 2 operating departments , eat and west.
Admin cost are allocated based on employees.
Accounting cost are allocated based on transactions.
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 100,000 | 35,000 | 234,000 | 900,000 |
| Employees | 35 | 35 | 50 | |
| Transactions | 50,000 | 20,000 | 40,000 |
Using the step method, how much accounting cost is assigned to east when accounting cost is assigned first?
Question 4
FF corp. has 2 service departments, admin and accounting, and 2 operating departments, east and west.
Admin costs are allocated based on employees.
Accounting costs are allocated based on transactions.
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 90,000 | 36,000 | 234,000 | 900,000 |
| Employees | 25 | 35 | 50 | |
| Transactions | 40,000 | 20,000 | 30,000 |
Using the step method, how much accounting cost is assigned to admin when accounting costs are allocated first?
Question 5
FF corp. has 2 service departments, admin and accounting, and 2 operating departments, east and west.
Admin costs are allocated based on employees.
Accounting costs are allocated based on transactions.
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 100,000 | 36,000 | 234,000 | 900,000 |
| Employees | 35 | 25 | 50 | |
| Transactions | 40,000 | 10,000 | 30,000 |
Using the step method, how much admin cost is assigned to the east department when accounting cost is allocated first?
Question 6
FF corp. has 2 service departments, admin and accounting, and 2 operating departments, east and west.
Admin costs are allocated based on employees.
Accounting costs are allocated based on transactions.
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 90,000 | 35,000 | 234,000 | 900,000 |
| Employees | 35 | 15 | 60 | |
| Transactions | 40,000 | 20,000 | 30,000 |
Using the step method, how much admin cost is assigned to accounting when accounting department cost is allocated first?
Question 7
FF corp. has 2 service departments, admin and accounting, and 2 operating departments, east and west.
Admin costs are allocated based on employees.
Accounting costs are allocated based on transactions.
| Admin (employees) | Accounting (transactions) | East | West | |
| Direct costs | 100,000 | 35,000 | 234,000 | 900,000 |
| Employees | 25 | 15 | 50 | |
| Transactions | 50,000 | 20,000 | 40,000 |
Using the reciprocal method, what proportion ( in decimal format) of the accounting department cost pool will be allocated to the east department?
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