Western Services has three service departments: Information Systems (IS). Personnel, and Administration. There are two operating...

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Western Services has three service departments: Information Systems (IS). Personnel, and Administration. There are two operating departments: Residential and Commercial. A summary of costs and other data for each department prior to allocation of service department costs for the latest period follows: IS 160 105 3,900 Personnel Administration Residential Commercial Number of 15 service tickets 190 2,410 Number of employees 110 138 Square footage occupied 8,000 16,100. The costs of the service departments and the allocation basis for each department follow. Department. Information Systems (15) Personnel Administration Direct Cost $ 31,000 IS service tickets 38,000 34,700 Allocation Base 145 97 3,800 Employees Square footage occupied 940 162 69,500 Required: a. Assume that the company allocates service department costs to production departments using the direct method. What amount of Information Systems (IS) Department costs will be allocated to the Commercial Department? b. Assume the same method of allocation as in requirement (a). What amount of Personnel Department costs is allocated to the Residential Department? c. Assuming that the company allocates service department costs to other departments using the step method (starting with Administration and then IS), what amount of Administration Department costs is allocated to the IS Department? d. Assume the same method of allocation as in requirement (c). What amount of IS Department costs is allocated to Administration? Western Services has three service departments: Information Systems (IS). Personnel, and Administration. There are two operating departments: Residential and Commercial. A summary of costs and other data for each department prior to allocation of service department costs for the latest period follows: IS 160 105 3,900 Personnel Administration Residential Commercial Number of 15 service tickets 190 2,410 Number of employees 110 138 Square footage occupied 8,000 16,100. The costs of the service departments and the allocation basis for each department follow. Department. Information Systems (15) Personnel Administration Direct Cost $ 31,000 IS service tickets 38,000 34,700 Allocation Base 145 97 3,800 Employees Square footage occupied 940 162 69,500 Required: a. Assume that the company allocates service department costs to production departments using the direct method. What amount of Information Systems (IS) Department costs will be allocated to the Commercial Department? b. Assume the same method of allocation as in requirement (a). What amount of Personnel Department costs is allocated to the Residential Department? c. Assuming that the company allocates service department costs to other departments using the step method (starting with Administration and then IS), what amount of Administration Department costs is allocated to the IS Department? d. Assume the same method of allocation as in requirement (c). What amount of IS Department costs is allocated to Administration?

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Calculate the allocated costs a Allocation using the direct method Inf... View the full answer