D direct method only 250 cso 1d3d los 1d3p wilcox

Info icon This preview shows pages 100–103. Sign up to view the full content.

View Full Document Right Arrow Icon
d. Direct method only. 250. CSO: 1D3d LOS: 1D3p Wilcox Industrial has two support departments, the Information Systems Department and the Personnel Department, and two manufacturing departments, the Machining Department and the Assembly Department. The support departments service each other as well as the two production departments. Company studies have shown that the Personnel Department provides support to a greater number of departments than the Information Systems Department. Which one of the following departmental allocations is present in the reciprocal method of departmental allocation? The costs of the a. Assembly Department are allocated to the Information Systems Department and the Personnel Department. b. Information Systems Department are allocated to the Machining Department and the costs of the Machining Department are allocated to the Assembly Department. c. Personnel Department are allocated solely to the Information Systems Department. d. Information Systems Department are allocated to the Personnel Department, Machining Department, and Assembly Department.
Image of page 100

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
101 251. CSO: 1D3d LOS: 1D3p Wilcox Industrial has two support departments, the Information Systems Department and the Personnel Department, and two manufacturing departments, the Machining Department and the Assembly Department. The support departments service each other as well as the two production departments. Company studies have shown that the Personnel Department provides support to a greater number of departments than the Information Systems Department. If Wilcox uses the step- down method of departmental allocation, which one of the following cost allocations would not occur? Some of the costs of the a. Personnel Department would be allocated to the Information Systems Department. b. Information Systems Department would be allocated to the Personnel Department. c. Personnel Department would be allocated to the Assembly Department. d. Personnel Department would be allocated to the Assembly Department and the Machining Department. 252. CSO: 1D3d LOS: 1D3p Render Inc. has four support departments (maintenance, power, human resources, and legal) and three operating departments. The support departments provide services to the operating departments as well as to the other support departments. The method of allocating the costs of the support departments that best recognizes the mutual services rendered by support departments to other support departments is the a. direct allocation method. b. dual-rate allocation method. c. step-down allocation method. d. reciprocal allocation method.
Image of page 101
102 253. CSO: 1D3d LOS: 1D3p Logo Inc. has two data services departments (the Systems Department and the Facilities Department) that provide support to the company’s three production departments (Machining Department, Assembly Department, and Finishing Department). The overhead costs of the Systems Department are allocated to other departments on the basis of computer usage hours. The overhead costs of the Facilities Department are allocated based on square feet occupied (in thousands).
Image of page 102

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 103
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern