Looking for answers? Westonci.ca is your go-to Q&A platform, offering quick, trustworthy responses from a community of experts. Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.
Sagot :
Answer:
Bens Corporation
Allocation of Service Departments' Direct Costs:
Repairs HR IT M1 M2 Total
Direct costs $36,000 $55,600 $81,000 $172,600
Step allocation:
HR direct costs 5,560 -55,600 11,120 19,460 19,460 0
IT costs 0 0 -92,120 20,471 71,649 0
Repairs costs -41,560 0 0 16,624 24,936 0
Total costs allocated 0 0 0 $56,555 $116,045 $172,600
Explanation:
a) Data and Calculations:
Usage data:
Repairs HR IT M1 M2
Repairs 0% 0% 40% 60%
HR 10% __ 20% 35% 35%
IT 0% 10% __ 20% 70%
HR Costs = $55,600:
Repairs = $5,560 ($55,600 * 10%)
IT = $11,120 ($55,600 * 20%)
M1 = $19,460 ($55,600 * 35%)
M2 = $19,460 ($55,600 * 35%)
IT costs = $92,120:
Repairs = $0 ($92,120 * 0%)
M1 = $20,471 ($92,120 * 20/90)
m2 = $71,649 ($92,120 * 70/90)
Repair costs = $41,560:
M1 = $16,624 ($41,560 * 40%)
M2 = $24,936 ($41,560 * 60%)
Answer:
HR allocation:
$3,960 = 0.10 × $39,600
$7,920 = 0.20 × $39,600
$13,860 = 0.35 × $39,600
$13,860 = 0.35 × $39,600
IT allocation:
$52,920 cost of IT is $45,000 (direct cost) + $7,920 (allocated from HR)
$11,760 = 0.2 × $52,920
(0.2 + 0.7)
$41,160 = 0.7 × $52,920
(0.2 + 0.7)
Repairs allocation:
$23,960 cost of Repair is $20,000 (direct cost) + $3,960 (allocated from HR)
$9,584 = 0.40 × $23,960
$14,376 = 0.60 × $23,960
We appreciate your time. Please come back anytime for the latest information and answers to your questions. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.