Costs Allocation

Which departments are service departments?

• Trimming

• Moulding

• HR

• Facility

Using Direct Allocation, what is the costs allocated by HR to Trimming?

• 20

• 13

• 33

• 16

Using Direct Allocation, what is the costs allocated by Facility to Moulding?

• 6

• 3

• 12

• 14

Using Step Down Method, which department's costs should be allocated first?

• HR

• Facility

• Trimming

• Moulding

What is the % of service provided by HR to Facility?

• 33%

• 20%

• 25%

• 23%

Under Step Down Allocation, what is the costs allocated from Facility to Moulding?

• 6

• 4

• 10

• 25

Under Step Down Allocation, what is the costs allocated from Facility to HR?

• 20

• 32

• 10

• 16

Under Step Down Allocation, what is the costs allocated from HR to Moulding?

• 24

• 36

• 28

• 25

What is the equation for HR?

• H = 50 + (7,500/(7,500+3,000+4,500)

• H = 50 + (10,500/(7,500+3,000+4,500)*F)

• HR = 50 + (7,500/(7,500+3,000+4,500)*F)

• H = 50 + (15,000/(7,500+3,000+4,500)*F)

Under reciprocal allocation, what is the costs allocated from HR to Trimming?

• 21

• 29

• 20

• 50