Chapter 04 – Appendix B Service Department Allocations
25. The total amount of Administrative Department cost allocated to the Adult Medicine
Department is closest to:
Chapter 04 – Appendix B Service Department Allocations
4B-22
26. The total Pediatrics Department cost after the allocations of service department costs is
closest to:
Brannigan Corporation uses the direct method to allocate service department costs to
operating departments. The company has two service departments, Information Technology
and Personnel, and two operating departments, Fabrication and Customization.
Information Technology Department costs are allocated on the basis of computer workstations
and Personnel Department costs are allocated on the basis of employees.
Chapter 04 – Appendix B Service Department Allocations
27. The total amount of Information Technology Department cost allocated to the two
operating departments is closest to:
28. The total Fabrication Department cost after service department allocations is closest to:
Chapter 04 – Appendix B Service Department Allocations
Enzor Surgical Hospital uses the direct method to allocate service department costs to
operating departments. The hospital has two service departments, Information Technology
and Administration, and two operating departments, Surgery and Recovery.
Information Technology Department costs are allocated on the basis of computer workstations
and Administration Department costs are allocated on the basis of employees.
29. The total amount of Information Technology Department cost allocated to the two
operating departments is closest to:
Chapter 04 – Appendix B Service Department Allocations
4B-25
30. The total Surgery Department cost after service department allocations is closest to:
Goodland Corporation uses the step-down method to allocate service department costs to
operating departments. The company has two service departments, Service Department A and
Service Department B, and two operating departments, Operating Department X and
Operating Department Y. Data concerning those departments follow:
Service Department A costs are allocated first on the basis of allocation base A and Service
Department B costs are allocated second on the basis of allocation base B.
Chapter 04 – Appendix B Service Department Allocations
31. In the first step of the allocation, the amount of Service Department A cost allocated to the
Operating Department X is closest to:
Chapter 04 – Appendix B Service Department Allocations
4B-27
32. The total Operating Department Y cost after allocations is closest to:
Ponce Corporation, a manufacturer, uses the step-down method to allocate service
department costs to operating departments. The company has two service departments,
Administration and Facilities, and two operating departments, Assembly and Finishing. Data
concerning those departments follow:
Administration Department costs are allocated first on the basis of labor hours and Facilities
Department costs are allocated second on the basis of space occupied.
Chapter 04 – Appendix B Service Department Allocations
33. In the first step of the allocation, the amount of Administration Department cost allocated
to the Assembly Department is closest to:
Chapter 04 – Appendix B Service Department Allocations
4B-29
34. The total Finishing Department cost after allocations is closest to:
Duda Clinic uses the step-down method to allocate service department costs to operating
departments. The clinic has two service departments, Personnel and Information Technology
(IT), and two operating departments, Family Medicine and Geriatric Medicine. Data
concerning those departments follow:
Personnel costs are allocated first on the basis of employees and IT costs are allocated second
on the basis of PCs.
Chapter 04 – Appendix B Service Department Allocations
35. In the first step of the allocation, the amount of Personnel Department cost allocated to the
Family Medicine Department is closest to:
Chapter 04 – Appendix B Service Department Allocations
4B-31
36. The total Geriatric Medicine Department cost after allocations is closest to:
Deardurff Legal Services, LLC, uses the step-down method to allocate service department
costs to operating departments. The firm has two service departments, Personnel and
Information Technology (IT), and two operating departments, Family Law and Corporate
Law. Data concerning those departments follow:
Personnel costs are allocated first on the basis of employees and IT costs are allocated second
on the basis of PCs.
Chapter 04 – Appendix B Service Department Allocations
37. In the first step of the allocation, the amount of Personnel Department cost allocated to the
Family Law Department is closest to: