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  • Act2 Prob1

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    Kyle Vincent Saballa
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    1. The document shows calculations using three different cost allocation methods - direct, step-down, and reciprocal - to allocate costs across departments. 2. The direct method allocates $5,363 in costs to the Operating department, with $363 in service costs and $5,000 in direct costs. 3. Using the step-down method, $375 in costs are allocated to the Operating department. 4. With the reciprocal method, $85 in costs are allocated to the Operating department.

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    May this be able to help you in anyway somehow. You're welcome

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    1. The document shows calculations using three different cost allocation methods - direct, step-down, and reciprocal - to allocate costs across departments. 2. The direct method allocates $5,363 in costs to the Operating department, with $363 in service costs and $5,000 in direct costs. 3. Using the step-down method, $375 in costs are allocated to the Operating department. 4. With the reciprocal method, $85 in costs are allocated to the Operating department.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    5 views2 pages

    Act2 Prob1

    Uploaded by

    Kyle Vincent Saballa
    1. The document shows calculations using three different cost allocation methods - direct, step-down, and reciprocal - to allocate costs across departments. 2. The direct method allocates $5,363 in costs to the Operating department, with $363 in service costs and $5,000 in direct costs. 3. Using the step-down method, $375 in costs are allocated to the Operating department. 4. With the reciprocal method, $85 in costs are allocated to the Operating department.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Direct Method

    1. Answer: 87
    Operating Dept. 1. 87
    Red Yellow 2. 5,363
    by Dept. Black 150 x 4/6 100 3. 375
    150 x 2/6 50 4. 6,075
    by Dept. White 150 x 7/8 263 5. 85
    150 x 1/8 37 6. 5,365
    87
    2. Answer: 5,363
    Operating Dept.
    Red Yellow
    by Dept. Black 150 x 4/6 100
    150 x 2/6 50
    by Dept. White 150 x 7/8 263
    150 x 1/8 37
    Service Cost: 363
    Direct Cost: 5,000
    TOTAL COST: 5,363

    Step-down method
    3. Answer: 375
    Service Departments Operating Departments
    Black White Red Yellow
    150 300
    by Dept. Black (150) 60 60 30
    0 360
    by Dept. White (360) 315 45
    0 375

    4. Answer: 6,075
    Service Departments Operating Departments
    Black White Red Yellow
    150 300
    by Dept. Black (150) 60 60 30
    0 360
    by Dept. White (360) 315 45
    0 75
    Direct Cost: 6,000
    TOTAL COST: 6,075

    Reciprocal Method
    5. Answer: 85
    Service Departments Operating Departments
    Black White Red Yellow
    150 300
    by Dept. Black (228) 91 91 46
    (78) 391
    by Dept. White (78) (391) 274 39
    0 0 85

    6. Answer: 5,365
    Service Departments Operating Departments
    Black White Red Yellow
    150 300
    by Dept. Black (228) 91 91 46
    (78) 391
    by Dept. White (78) (391) 274 39
    0 0 365
    Direct Cost: 5,000
    TOTAL COST: 5,365

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