Maliyet Muhasebesi ALLOCATION OF SUPPORT DEPARTMENTS’ COSTS QUESTIONS: ALLOCATION OF SUPPORT DEPARTMENTS’ COSTS Question 1. Pink Clinic has three support and two operating departments. The following data from operations were collected for analysis. Budgeted manufacturing overhead costs Human Resource HR (Support Dept.) $ 90,000 Information Systems IS (Support Dept.) $ 72,000 Maintenance M (Support Dept.) $ 84,000 Pediatric P (Operating Dept.) $ 520,000 Cardiology C (Operating Dept.) $ 375,000 Service furnished: HR IS M P C By Human Resource (number of employees) 15 20 30 120 130 By Information Systems (number of computers) 12 27 10 60 50 By Maintenance (budgeted maintenance hours) 80 120 50 250 500 What are the costs of the Human Resource, Information Systems and Maintenance allocated to Pediatric and Cardiology using the step down method? The order of allocation will be: first HR second IS, and finally M. Question 2. Tamara's Battery Company has two service department's Personnel and Maintenance. The Maintenance Department's costs of $160,000 are allocated on the basis of standard hours used. The Personnel Department's costs of $40,000 are allocated based on the number of employees. Costs of Department A and B are $80,000 and $120,000, respectively. Data on standard service hours and number of employees are as follows: Maintenance Personnel Production Departments Standard service Department Department A B Hours used 400 400 480 320 Number of Employees 20 20 80 240 Allocate service department costs to production departments using direct method Question 3. Campaign Printing has two service departments, S1 and S2, and two production departments, P1 and P2. The data for June 2002 were as follows: Services provided to: Activity Costs S1 S2 P1 P2 S1 $90,000 10% 40% 50% S2 60,000 20% 55% 25% Fixed Costs P1 $360,000 P2 $520,000 What are the allocation of costs of service departments, S1 and S2, to production departments, P1 and P2 using the reciprical method? Question 4. Juliana Company has two support departments: Information Systems and Human Resources. The Information Systems Department's costs of $200,000 are allocated on the basis of standard hours. The Human Resources Department's costs of $400,000 are allocated based on the number of employees. Costs of Operating Department Assembly and Testing are $700,000 and $150,000 respectively. Data on standard service hours and number of employees are as follows: Support Departments Operating Departments Information Systems Human Resource Assembly Testing Standard Hours 400 250 350 Percentage 40 % 25 % 35 % Number of Employees 30 120 50 Percentage 15 % 60 % 25 % What are the allocation of costs of Support Departments Information Systems and Human Resources to Operating Departments Assembly and Testing using the reciprical method? Question 5. Alfred, owner of Hi-Tech Fiberglass Fabricators Inc. is interested in using the reciprocal allocation method. The following data from operations were collected for analysis. Budgeted manufacturing overhead costs Plant Maintenance PM (Support Dept.) $350,000 Data Processing DP (Support Dept.) $ 75,000 Machining M (Operating Dept.) $225,000 Capping C (Operating Dept.) $125,000 Service furnished: By Plant Maintenance (budgeted labor-hours) By Data Processing (budgeted computer time) Data Processing 2,125 Plant Maintenance 600 Machining 3,400 Machining 3,500 Capping 11,475 Capping 900 What are the costs of the Data Processing and the Plant Maintenance allocated to Machining and Capping using the reciprocal method? Question 6. Reddicks Clinic uses the step-down method to allocate service department costs to operating departments. The clinic has three service departments, Personnel (P), Information Technology (IT), and, Maintenance (M) and two operating departments, Family Medicine and Pediatric. Data concerning those departments follow: SUPPORT DEPARTMENTS OPERATING DEPARTMENTS Personnel IT Maintenance Family Medicine Pediatric Departmental Costs $ 84,000 $ 42,000 $ 25,000 $ 650,000 $ 350,000 Employees 18 25 50 110 165 PCs 19 29 50 120 130 Maintenance Hours 20 40 50 120 80 Personnel costs are allocated first on the basis of employees, IT costs are allocated second on the basis of PCs, and Maintenance costs are allocated third on the basis of maintenance hours. Allocate costs of support departments to operating departments using step down method.