CH 11 HW.docx - Exercise 11-28 Cost Allocation Direct...

This preview shows page 1 - 3 out of 9 pages.

Exercise 11-28 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:MaintenancePersonnel Printing DevelopingMachine-hours1,800 1,800 4,200 Labor-hours550 550 2,200 Department direct costs$2,000 $ 12,000 $13,600 $10,500 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.)
Exercise 11-30 Cost Allocation: Step Method (LO 11-3)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:MaintenancePersonnel Printing DevelopingMachine-hours1,800 1,800 5,400 Labor-hours650 650 2,600 Department direct costs$4,000 $ 14,000 $15,900 $12,600
Required:Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)
Exercise 11-33 Cost Allocation: Reciprocal Method (LO 11-4)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:MaintenancePersonnel Printing DevelopingMachine-hours828 874 2,898 Labor-hours480 312 1,608 Department direct costs$10,000 $21,000 $25,000 $18,000 Required:Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture