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: Number of IS service tickets Number of employees Square footage occupied IS 95 40 3,900 Personnel 125 45 8,000 Administration Residential 80 Commercial 1,410 940 32 138 3,800 16,100 162 69,500 The costs of the service departments and the allocation basis for each department follow. Department Direct Cost Allocation Base Information Systems (IS) $ 18,000 Personnel Administration 25,000 21,700 IS service tickets Employees Square footage occupied 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D 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? Note: Do not round intermediate calculations. Amount Required A Required B Required C Required D Assume the same method of allocation as in requirement (a). What amount of Personnel Department costs is allocated to the Residential Department? Note: Do not round intermediate calculations. Amount < Required A Required C > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D 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? Note: Do not round intermediate calculations. Amount < Required B Required D > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Assume the same method of allocation as in requirement (c). What amount of IS Department costs is allocated to Administration? Note: Do not round intermediate calculations. Amount < Required C Required D > 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: Number of IS service tickets Number of employees Square footage occupied IS 95 40 3,900 Personnel 125 45 8,000 Administration Residential 80 Commercial 1,410 940 32 138 3,800 16,100 162 69,500 The costs of the service departments and the allocation basis for each department follow. Department Direct Cost Allocation Base Information Systems (IS) $ 18,000 Personnel Administration 25,000 21,700 IS service tickets Employees Square footage occupied 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D 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? Note: Do not round intermediate calculations. Amount Required A Required B Required C Required D Assume the same method of allocation as in requirement (a). What amount of Personnel Department costs is allocated to the Residential Department? Note: Do not round intermediate calculations. Amount < Required A Required C > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D 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? Note: Do not round intermediate calculations. Amount < Required B Required D > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Assume the same method of allocation as in requirement (c). What amount of IS Department costs is allocated to Administration? Note: Do not round intermediate calculations. Amount < Required C Required D >
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Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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