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 3 different complete service cost allocation report with details using the following methods: 1. Direct Method
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 3 different complete service cost allocation report with details using the following methods: 1. Direct Method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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
Agency Line
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 3 different complete service cost allocation report with details using the following methods:
1. Direct Method
IT Services](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F323eb64c-4d84-4557-a308-3d66399f78a4%2Fee53a6e1-e2fb-4b5c-8a22-a1aa4e80b424%2F4gr4ycs_processed.png&w=3840&q=75)
Transcribed Image Text: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
Agency Line
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 3 different complete service cost allocation report with details using the following methods:
1. Direct Method
IT Services
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