Boysenberry Corp. has two support departments, Personnel (P) and Maintenance (M), and two producing departments, Blending (B) and Finishing (F). Estimated direct costs and percentages of services used by these departments are as follows:        Used by Department   Support Dept. P         M                B F P -       10%            60% 30% M 10%          -               40% 50% Direct costs   Required: $9,000    $13,500      $40,000 $35,000 Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter15: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 3CMA: A firm has 100,000 in direct materials costs, 50,000 in direct labor costs, and 80,000 in overhead....
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Boysenberry Corp. has two support departments, Personnel (P) and Maintenance (M), and two producing departments, Blending (B) and Finishing (F). Estimated direct costs and percentages of services used by these departments are as follows:

  

 

 

Used by Department

 

Support Dept.

P

        M                B

F

P

-

      10%            60%

30%

M

10%

         -               40%

50%

Direct costs

 

Required:

$9,000

   $13,500      $40,000

$35,000

  1. Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method.
  2. Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method.

 

 

 

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