1. Leader Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Estimated direct costs and percentages of services used by these departments are as follows: Allocation of support departments SI S2 10% PI P2 S1 40% S2 Direct costs 50% 30% 20% 50% £4,500 E8,000 £10,000 £15,000 Required: a. Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. b. Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method.

1. Leader Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Estimated direct costs and percentages of services used by these departments are as follows: Allocation of support departments SI S2 10% PI P2 S1 40% S2 Direct costs 50% 30% 20% 50% £4,500 E8,000 £10,000 £15,000 Required: a. Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. b. Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Leader Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Estimated direct costs and percentages of services used by these departments are as follows: Allocation of support departments S1 S2 P1 40% P2 S1 S2 Direct costs 50% 30% £15,000 10% 20% £4,500 50% £8,000 £10,000 Required: Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. b. Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method. a. 2. Describe the differences between support and producing departments. Give two examples of each.
The following information is departmental cost allocation with two service departments and two production departments. Department Cost Percentage Service Provided to S1 S2 P1 P2 Service 1 (S1) $ 32,000 0% 25% 30% 45% Service 2 (S2) 23,000 20 0 20 60 Production 1 (P1) 130,000 Production 2 (P2) 180,000 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first? The following information relates to a joint production process for three products, with a total joint production cost of $165,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $ 181,500 320 2 99,000 960 3 49,500 1,920 $ 330,000 3,200 What percentage of joint cost is allocated to each of the three products using the sales value at split-off method? Do not give answer in image
1. The following information is departmental cost allocation with two service departments and two production departments. Department Cost Percentage Service Provided to S1 S2 P1 P2 Service 1 (S1) $ 46,000 0% 20% 40% 40% Service 2 (S2) 36,000 25 0 30 45 Production 1 (P1) 260,000 Production 2 (P2) 310,000 a. What is the amount of service department cost allocated to P1 and P2 using the direct method? b. What is the total cost in P1 and P2 after allocation using the direct method? c. What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first? d. What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $260,000 to $280,000?
Required information [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Cost $ 47,000 37,000 270,000 320,000 Service Department Cost Allocation Total Cost Percentage Service Provided to P1 S1 0% 20 S2 20% 0 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first? P1 40% 20 P2 P2 40% 60
Algebraic method The following chart indicates the percentage of support department services used by other departments. Service departments are designated S1, S2, and S3; operating departments are designated RP1 and RP2. Services Used S3 Department S1 S2 N/A 10% 40% N/A S1 S2 S3 20 30 N/A RP1 RP2 20% 30% 40% 30 20 10 40 10 Direct costs of the period were $170,000, $360,000, and $600,000 for S1, S2, and S3, respectively. Allocate the support department costs to the operating departments using the algebraic method. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700.
II. AJA Company has two service departments (A and B) and two producing departments (X and Y). Data provided are as follows: Service Departments Operating Departments Y A В Direct Costs P150 P300 P5,000 P6,000 Services performed by Dept. A Services performed by Dept. B 40% 40% 20% 20% 70% 10% 1) If the company is using the direct method to allocate service department costs, the service department cost allocated to Department Y is: 2) Using the information in number 1, what is the total cost for Department X? 3) If the company is using the step-down to allocate service department costs and Department A costs are allocated first, the service department cost allocated to Department Y is? 4) Using the information in number 3, the total cost for Department X is? 5) If the reciprocal method is used, the service department cos allocated to department Y is?
The following information is departmental cost allocation with two service departments and two production departments. Department Cost Percentage Service Provided to S1 S2 P1 P2 Service 1 (S1) $ 46,000 0% 20% 40% 40% Service 2 (S2) 36,000 25 0 30 45 Production 1 (P1) 260,000 Production 2 (P2) 310,000 What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $260,000 to $280,000?
Use the following information to answer questions 2 through 6: M2). The following information is available. A company has two service departments (S1 and 52) and two manufacturing divisions (M1 and Percent Allocable to $2 20% Costs Incurred Department $1 $200,000 500,000 d. 62.5% $2 50% 2. Using the direct method, what proportion of S1's costs will be allocated to M2! a 20% b. 37.5% C. $295,400 d. $302,500 3. Using the direct method, how much of the service department costs will be allocated to M1? a. $195,250 b. $205,750 c. $308,750 d. $326,450 4. Using the step method, how much of the service department costs will be allocated to M1? a. $243,000 b. $265.700 a. S1-$290,000+ 0.5 × $2 b. S1-$290,000+ 0.2 × S2 c. S1-$290,000+ 0.3 × $2 715473_1&course_id=_31557 M1 M2 expressed? Using the reciprocal method, how should the total service department costs of S1 be E d. S1 - $500,000+ 0.5 × $2 Matching.docx 6. Using the reciprocal method, how much of the service department costs will be…
II. AJA Company has two service departments (A and B) and two producing departments (X and Y). Data provided are as follows: Service Departments B P300 Operating Departments A Y Direct Costs P150 P5,000 P6,000 Services performed by Dept. A Services performed by Dept. B 40% 40% 20% 20% 70% 10% 1) If the company is using the direct method to allocate service department costs, the service department cost allocated to Department Y is: 2) Using the information in number 1, what is the total cost for Department X? 3) If the company is using the step-down to allocate service department costs and Department A costs are allocated first, the service department cost allocated to Department Y is? 4) Using the information in number 3, the total cost for Department X is? 5) If the reciprocal method is used, the service department cos allocated to department Y is?
Service Cost Allocation Harley Corp. has two service departments, (Admin Support Dept. & It Support Dept.) and two producing departments (AgencyLine and BancAssure). Provided below are the relevant data: Service Departments Operating Departments Admin IT Services AgencyLine BancAssure Direct Costs P150,000 P300,000 P5,000,000 P6,000,000 Services by Admin Support 40% 40% 20% Services by IT Support 20% 70% 10% Requirements Prepare a complete service cost allocation report with details using the following method: Reciprocal Method
Service Cost Allocation Harley Corp. has two service departments, (Admin Support Dept. & It Support Dept.) and two producing departments (AgencyLine and BancAssure). Provided below are the relevant data: Service Departments Operating Departments Admin IT Services AgencyLine BancAssure Direct Costs P150,000 P300,000 P5,000,000 P6,000,000 Services by Admin Support 40% 40% 20% Services by IT Support 20% 70% 10% Requirements Prepare a complete service cost allocation report with details using the following method: Step-Down Method (Admin Support Costs are allocated first)
Required information SB (Static) The following information is... [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Service 1 (S1) Service 2 (52) Production 1 (P1) Production 2 (P2) P1 P2 Cost $ 30,000 20,000 100,000 150,000 Total Cost Allocated S1 0% 20 P2 35% 20 60 Brief Exercise 7-14 (Static) If the cost in P1 is changed from... [LO 7-3] What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $100,000 to $120,000? 52 P1 30% 35% 0