Operating Department Service Department Physical Plant $ 78,860 1,000 1,000 Testing $ 737,860 Administration Departmental costs Employee time Space occupied Assembly $ 127,160 25,000 $ 26,220 4,000 9,000 12,000 6,000 37,000 Administration Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total Testing Department cost after allocations is closest to: Multiple Choice $754.279 $757,240 $748.960 $757,368

Operating Department Service Department Physical Plant $ 78,860 1,000 1,000 Testing $ 737,860 Administration Departmental costs Employee time Space occupied Assembly $ 127,160 25,000 $ 26,220 4,000 9,000 12,000 6,000 37,000 Administration Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total Testing Department cost after allocations is closest to: Multiple Choice $754.279 $757,240 $748.960 $757,368

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 7P: Distribution of service department costs to production departments using the sequential distribution...

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Distribution of service department costs to production departments using the sequential distribution method Required: Using the information in P4-6, prepare a schedule showing the distribution of the service departments’ expenses using the sequential distribution method in the order of number of other departments served. (Hint: First distribute the service department that services the greater number of other departments.)
Step-down method (IS first) Dialog content starts Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $390,000 $3,600,000 $8,700,000 $12,470,000 $25,160,000 Allocation of IS costs 360,000 (3,600,000) 1,296,000 1,944,000 $750,000 $0 Allocation of AS costs (750,000) 450,000 300,000 Total budgeted overhead of operating departments $0 $10,446,000 $14,714,000 $25,160,000 Reference Dialog content starts GOVT CORP Direct method $1,674,000 $2,316,000 Step-down (AS first) 1,658,400 2,331,600 Step-down (IS first) 1,746,000 2,244,000 Requirement 1b. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use repeated iterations. (Round your final answers to the nearest whole dollar.…
Step-down method (IS first) Dialog content starts Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $390,000 $3,600,000 $8,700,000 $12,470,000 $25,160,000 Allocation of IS costs 360,000 (3,600,000) 1,296,000 1,944,000 $750,000 $0 Allocation of AS costs (750,000) 450,000 300,000 Total budgeted overhead of operating departments $0 $10,446,000 $14,714,000 $25,160,000 Reference Dialog content starts GOVT CORP Direct method $1,674,000 $2,316,000 Step-down (AS first) 1,658,400 2,331,600 Step-down (IS first) 1,746,000 2,244,000
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