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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 |
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| 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 |
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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 “$” sign in your response.) |
|
Service Departments |
Operating Departments |
||||
| Factory Administration | Maintenance | X | Y | ||
| Departmental costs | |||||
| Allocations: | ($)? | ($)? | ($)? | ($)? | |
| Factory Administration: | ? | ? | ? | ||
| Maintenance: | ? | ? | ? | ? | |
| Total costs after allocations: | ($)? | ($)? | ($)? | ($)? | |