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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. Negative
amounts should be indicated by a minus sign. Do not round intermediate
calculations. Omit the “$” sign in your response.)
Service Departments
Operating Departments
Factory Administration Maintenance X Y
Departmental costs
Allocations: ($)?
($)?
($)?
($)?
Factory Administration: ?
?
?
Maintenance: ?
?
?
?
Total costs after allocations: ($)?
($)?
($)?
($)?
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