Problem $11-57($Static$)$ Comparison of Allocation Methods $($LO $11-1)$

Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations follows:

Required:

a$.$ Allocate the cost of the service departments to the operating divisions using the direct method.

b$.$ Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal.

c$.$ Allocate the cost of the service departments to the operating divisions using the reciprocal method.

Complete this question by entering your answers in the tabs below.

Required A

Allocate the cost of the service departments to the operating divisions using the direct method.

Note: Amounts to be deducted should be indicated by a minus sign. Required A

Required $\backslash ($ B $\backslash )$

Required C

Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal.

Note: Amounts to be deducted should be indicated by a minus sign.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multirow$\{2\}\{*\}\{$From$\}$ & $\backslash$multicolumn$\{8\}\{|$c$|\}\{$To$\}\backslash \backslash$

$\backslash$hline & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Legal$\}$ & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Personnel$\}$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Eastern$\}$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Western$\}\backslash \backslash$

$\backslash$hline Department costs & & & & & & & & $\backslash \backslash$

$\backslash$hline Legal allocation & & & & & & & & $\backslash \backslash$

$\backslash$hline Personnel allocation & & & & & & & & $\backslash \backslash$

$\backslash$hline Total costs & $\backslash$$ & $0$ & $\backslash$$ & $0$ & $\backslash$$ & $0$ & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Assessment Tool iFrame

Required A

Required B

Required C

Allocate the cost of the service departments to the operating divisions using the reciprocal method.

Note: Amounts to be deducted should be indicated by a minus sign.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Personnel$\}$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Legal$\}$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Eastern$\}$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Western$\}\backslash \backslash$

$\backslash$hline Costs & & & & & & & & $\backslash \backslash$

$\backslash$hline Personnel & & & & & & & & $\backslash \backslash$

$\backslash$hline Legal & & & & & & & & $\backslash \backslash$

$\backslash$hline Total & $\backslash$$ & $0$ & $\backslash$$ & $0$ & $\backslash$$ & $0$ & $\backslash$$ & $0\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$