ud x D Assignment 8 (Ch 11) A x My C ezto.mheducation.com/hm.tpx 024938344430608
ID: 2552844 • Letter: U
Question
ud x D Assignment 8 (Ch 11) A x My C ezto.mheducation.com/hm.tpx 024938344430608594 1522034186988 ps http//www.macewa Madision Park Co-op, a grocery and gift shop, has provided the following data to be used in its service department cost allocations Departmental costs before allocations 150,000 320 250 S 40,000 2,320,000 $950,000 740 1,000 160 100 3,100 4,000 Space occupied in square metres Required: Using the step-down method, allocate the costs of the service departments to the two operating departments Allocate the costs of the Administration Department first on the basis of employee-hours and then on the costs of the Janitorial Services Department on the basis of space occupied. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations nearest dollar amount. r answers to the Service Departments Administration JanitorialGroceries S Operating Gifts Total Departmental costs before allocations Alocation S40.000 2.320,000 S 950,000 S 3460,000 150,000 Administration costs Janitorial costs Total costs after allocation 13 inExplanation / Answer
Solution:
Service departments
Operating departments
Administration costs
Janitorial costs
Administration costs
Janitorial costs
Totals
Departmental costs before allocations
$150,000
$40,000
$2,320,000
$950,000
$3,460,000
Allocation
Administration costs
-$150,000
$6,000
$116,250
$27,750
Janitorial costs
-$46,000
$36,800
$9,200
Total costs after allocation
$0
$0
$2,473,050
$986,950
$3,460,000
Working:
Administration costs
Based on employee credit hours in the other three departments: 160 + 3,100 + 740 = 4,000.
Janitorial: $150,000*160/4,000 = $6,000
Groceries: $150,000 * 3,100/4,000 = $116,250
Gifts: $150,000 * 740/4,000 = $27,750
Based on occupied space by the two operating departments: 4,000 + 1,000 = 5,000.
Janitorial Department costs of $40,000 and the Administration costs of $6,000, both of these that have been allocated to the Janitorial Department, are allocated to the two operating departments.
Groceries: $46,000* 4,000/5,000 = $36,800
Gifts: $46,000 *1,000/5,000 = $9,200
Service departments
Operating departments
Administration costs
Janitorial costs
Administration costs
Janitorial costs
Totals
Departmental costs before allocations
$150,000
$40,000
$2,320,000
$950,000
$3,460,000
Allocation
Administration costs
-$150,000
$6,000
$116,250
$27,750
Janitorial costs
-$46,000
$36,800
$9,200
Total costs after allocation
$0
$0
$2,473,050
$986,950
$3,460,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.