1 Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR), Legal, and Testing. In the most recent period, the following costs and service department usage ratios were recorded: 02:25:09 eBook Supplying Department Human Resources Legal Testing Direct cost Required: Human Resources Legal Using Department Testing Domestic Global 0 10% 15% 0 10% 25% 50% 0 30% 60% 10% 0 0 45% 45% $ 264,500 $ 190,000 $ 90,000 $ 556,000 $ 505,000 Allocate the service department costs to the two operating departments using the reciprocal method. Note: Do not round intermediate calculations. Allocated to: From: Costs Domestic Global Human Resources Legal Testing Total
1 Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR), Legal, and Testing. In the most recent period, the following costs and service department usage ratios were recorded: 02:25:09 eBook Supplying Department Human Resources Legal Testing Direct cost Required: Human Resources Legal Using Department Testing Domestic Global 0 10% 15% 0 10% 25% 50% 0 30% 60% 10% 0 0 45% 45% $ 264,500 $ 190,000 $ 90,000 $ 556,000 $ 505,000 Allocate the service department costs to the two operating departments using the reciprocal method. Note: Do not round intermediate calculations. Allocated to: From: Costs Domestic Global Human Resources Legal Testing Total
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 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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