Prepare a schedule showing the allocation of service


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.


Service Departments

Operating Departments


Factory Administration Maintenance X Y
Departmental costs



Allocations: ($)?
($)?
($)?
($)?
Factory Administration: ?
?
?

Maintenance: ?
?
?
?





Total costs after allocations: ($)?
($)?
($)?
($)?


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Managerial Accounting: Prepare a schedule showing the allocation of service
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