Maurice Tutor

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Category > Accounting Posted 11 Aug 2017 My Price 9.00

Marvin Company

Exercise E6-8 Allocation of Service Department Costs
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

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 12:08 PM My Price 9.00

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