Question 1:

Question 2:

Question 3:

Exercise 11-29 (Algo) Cost Allocation: Direct Method (LO 11-2) University Printers has two service departments (Maintenance and Personnel and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel 2,800 Machine-hours Labor-hours Department direct costs 900 $ 5,600 Printing 2,eee 900 $17,380 Developing 3,880 2,180 $13,800 $15,600 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be Indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation Personnel allocation Total costs allocated $ 0 $ 0 $ 0 $ 0 Exercise 11-32 (Algo) Cost Allocation: Reciprocal Method (LO 11-4) Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Direct Department Costs Maintenance Cafeteria Machining Assembly Machining $140, eee Assembly 81,000 Maintenance 53, eee 2.2 Cafeteria 34,cee 0.7 2.2 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Cost Allocation To: Cafeteria Machining Maintenance Assembly From: Service department costs Maintenance Cafeteria Total $ 0 $ 0 $ 0 $ 0 Problem 11-60 (Algo) Cost Allocation: Step and Reciprocal Methods (LO 11-3, 4) Great Eastern Credit Union (GECU) has two operating departments (Branches and Electronic) and three service departments Processing, Administration, and Maintenance). During July, the following costs and service department usage ratlos were recorded: Supplying Using Department Department Processing Administration Maintenance Branches Electronic Processing 488 Administration 4866 Maintenance 28 28 56% Direct cost $92,00 $620,000 $340, eee $5,200,000 $2,100,eee 15% 686 3 1865 Required: Allocate the service department costs to the two operating departments using the reciprocal method. Allocated to: Processing Administration Branches Costs Electronic Maintenance Processing Administration Total $ 0 $ 0