Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two...
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Woodstock Binding has two service departments, IT Information Technology and HR Human Resources and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets issued with each IT request in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: Required: Use the direct method to allocate these service department costs to the operating departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round "Publishing" and "Binding" answers to decimal places.
Woodstock Binding has two service departments, IT Information Technology and HR Human Resources and two operating
departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets issued with each IT
request in each department and HR costs on the basis of employees in each department.
The following data appear in the company records for the current period:
Required:
Use the direct method to allocate these service department costs to the operating departments.
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round "Publishing"
and "Binding" answers to decimal places.
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