Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service
departments (Accounting and Facilities) at DuBay Films for the past month follow:
Supplying Department
Accounting
Facilities
Direct cost
From:
Service department costs
Accounting
Facilities
Total allocations
Direct costs
Total costs
Accounting
0
0.20
$ 180,000
Required:
Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total
costs of Training, Independent, and Commercial after this allocation?
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your
final answers to the nearest whole dollar amounts.
Accounting
$
$
Facilities
0.30
0
$ 179,500
0 $
0
$
Using Department
Training
0.20
0.20
$ 320,000
Facilities
Cost Allocation To:
Training
0 $
Independent
0.10
0.10
$ 200,000
0 $
0 $
0 $
Commercial
0.40-
0.50
$ 286,000
Independent
0 $
0 $
Commercial
0
0
Transcribed Image Text:es Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service departments (Accounting and Facilities) at DuBay Films for the past month follow: Supplying Department Accounting Facilities Direct cost From: Service department costs Accounting Facilities Total allocations Direct costs Total costs Accounting 0 0.20 $ 180,000 Required: Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Accounting $ $ Facilities 0.30 0 $ 179,500 0 $ 0 $ Using Department Training 0.20 0.20 $ 320,000 Facilities Cost Allocation To: Training 0 $ Independent 0.10 0.10 $ 200,000 0 $ 0 $ 0 $ Commercial 0.40- 0.50 $ 286,000 Independent 0 $ 0 $ Commercial 0 0
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