PLease show work Not sure how to calulate properly IS Personnel Administration Residential Commercial Number of IS service tickets 90 120 75 1,410 940 Number of employees 35 40 27 138 162 Square footage occupied 3,900 8,000 3,800 16,100 69,500 The costs of the service departments and the allocation basis for each department follow. Department Direct Cost Allocation Base Information Systems (IS) $ 17,000 IS service tickets Personnel 24,000 Employees Administration 20,700 Square footage occupied Assume that the company allocates service department costs to production departments using the direct method. What amount of Information Systems (IS) Department costs will be allocated to the Commercial Department? Assume the same method of allocation as in requirement (a). What amount of personnel department costs is allocated to the residential department?
PLease show work Not sure how to calulate properly IS Personnel Administration Residential Commercial Number of IS service tickets 90 120 75 1,410 940 Number of employees 35 40 27 138 162 Square footage occupied 3,900 8,000 3,800 16,100 69,500 The costs of the service departments and the allocation basis for each department follow. Department Direct Cost Allocation Base Information Systems (IS) $ 17,000 IS service tickets Personnel 24,000 Employees Administration 20,700 Square footage occupied Assume that the company allocates service department costs to production departments using the direct method. What amount of Information Systems (IS) Department costs will be allocated to the Commercial Department? Assume the same method of allocation as in requirement (a). What amount of personnel department costs is allocated to the residential department?
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 7P: Distribution of service department costs to production departments using the sequential distribution...
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PLease show work Not sure how to calulate properly
| IS | Personnel | Administration | Residential | Commercial | |
|---|---|---|---|---|---|
| Number of IS service tickets | 90 | 120 | 75 | 1,410 | 940 |
| Number of employees | 35 | 40 | 27 | 138 | 162 |
| Square footage occupied | 3,900 | 8,000 | 3,800 | 16,100 | 69,500 |
The costs of the service departments and the allocation basis for each department follow.
| Department | Direct Cost | Allocation Base |
|---|---|---|
| Information Systems (IS) | $ 17,000 | IS service tickets |
| Personnel | 24,000 | Employees |
| Administration | 20,700 | Square footage occupied |
Assume that the company allocates service department costs to production departments using the direct method. What amount of Information Systems (IS) Department costs will be allocated to the Commercial Department?
Assume the same method of allocation as in requirement (a). What amount of personnel department costs is allocated to the residential department?
I keep getting mixed up
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