Management Accounting
SuperClassSHOW WORKING
Flinders
Company has two service departments, Factory Administration and
Maintenance, and two operating departments. Selected information
relating to these departments is given below:
Service Departments | Operating Departments | |||
Factory Administration | Maintenance | X | Y | |
Departmental costs | $ 143,000 | $ 69,674 | $ 701,000 | $ 601,000 |
Number of employees | 4 | 4 | 50 | 50 |
Total labor hours | 4,100 | 6,100 | 50,000 | 60,000 |
The company allocates service department costs by the step-down method. Factory Administration costs are allocated first on the basis of number of employees, and then Maintenance costs are allocated on the basis of total labor hours. |
Required: |
Prepare a schedule showing the allocation of service department costs to other departments. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Omit the "$" sign in your response.) |
Service Departments | Operating Departments | ||||
Factory Administration | Maintenance | X | Y | ||
Departmental costs | |||||
Allocations: | ($)? | ($)? | ($)? | ($)? | |
Factory Administration: | ? | ? | ? | ||
Maintenance: | ? | ? | ? | ? | |
Total costs after allocations: | ($)? | ($)? | ($)? | ($)? | |
- 8 years ago
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- management_accounting.xlsx