Flinders
Company has two service departments, Factory Administration and Maintenance, and two operating departments. Selected information relating to these departments is given below:
|
Service Departments
|
Operating Departments
|
|
Factory
Administration |
Maintenance |
X |
Y |
| Departmental costs |
$ 143,000 |
$ 69,674 |
$ 701,000 |
$ 601,000 |
| Number of employees |
4 |
4 |
50 |
50 |
| Total labor hours |
4,100 |
6,100 |
50,000 |
60,000 |
|
The company allocates service department costs by the step-down method. Factory Administration costs are allocated first on the basis of number of employees, and then Maintenance costs are allocated on the basis of total labor hours.
Required:
Prepare a schedule showing the allocation of service department costs to other departments. (Leave no cells blank - be certain to enter "0" wherever required.
|
Service Departments
|
Operating Departments
|
|
Factory Administration |
Maintenance |
X |
Y |
| Departmental costs |
|
|
|
|
| Allocations: |
($)?
|
($)?
|
($)?
|
($)?
|
| Factory Administration: |
?
|
?
|
?
|
|
| Maintenance: |
?
|
?
|
?
|
?
|
|
|
|
|
|
| Total costs after allocations: |
($)?
|
($)?
|
($)?
|
($)?
|
|
|