Marvin Company has three service departments (S1, S2, and S3) and two production

Question

Marvin Company has three service departments (S1, S2, and S3)   and two production departments (P1 and P2). The following data relate to   Marvin's allocation of service department costs: Budgeted Costs Nbr of Employees S1 $4,000,000 80 S2 3,000,000 60 S3 2,000,000 30 P1 200 P2 300 Service department costs are allocated by the direct method. The   number of employees is used as the allocation base for all service department   costs. Required: a. Allocate service department costs to production departments. Nbr of employees: Total Employees: % of Employees: P1 Number Number Formula P2 Number Number Formula b. Calculate the total service department cost allocated to each   production department. Service
    Department Service Dept.
    Costs Costs   Allocated to: P1 P2 S1 Amount Amount Formula S2 Amount Amount Formula S3 Amount Amount Formula Total: Formula Formula Formula Marvin Company has three service departments (S1, S2, and S3)   and two production departments (P1 and P2). The following data relate to   Marvin's allocation of service department costs: Budgeted Costs Nbr of Employees S1 $4,000,000 80 S2 3,000,000 60 S3 2,000,000 30 P1 200 P2 300 Service department costs are allocated by the direct method. The   number of employees is used as the allocation base for all service department   costs. Required: a. Allocate service department costs to production departments. Nbr of employees: Total Employees: % of Employees: P1 Number Number Formula P2 Number Number Formula b. Calculate the total service department cost allocated to each   production department. Service
    Department Service Dept.
    Costs Costs   Allocated to: P1 P2 S1 Amount Amount Formula S2 Amount Amount Formula S3 Amount Amount Formula Total: Formula Formula Formula

Explanation / Answer

a. Allocate service department costs to production departments. Nbr of employees: Total Employees: % of Employees: P1 200 500 40.00% P2 300 500 60.00% b. Calculate the total service department cost allocated to each production department. Service Service Dept. Costs Allocated to: Department Costs P1 P2 S1 $4,000,000.00 $1,600,000.00 $2,400,000.00 S2 $3,000,000.00 $1,200,000.00 $1,800,000.00 S3 $2,000,000.00 $   800,000.00 $1,200,000.00 Total: $9,000,000.00 $3,600,000.00 $5,400,000.00

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.