The Helix Manufacturing Company has two Production Departments: Mixing and Molding. Each of these two departments uses the services provided by the Utilities and Human Resources Departments, which both support the production functions and each other's functions as well. Helix uses the direct method of allocating these service department costs to the production departments. Utilities are allocated on the basis of hours of department operations and Human Resources is allocated on the basis of departmental direct labor hours. Last period the following costs were recorded:
Production Department data:
Required:
a. Determine the amount of Utilities costs allocated to the Mixing and Molding Departments using the direct method of allocating service department costs.
b. Determine the amount of Human Resource costs allocated to the Mixing and Molding Departments using the direct method of allocating service department costs.
c. Determine the total overhead costs of the Mixing and Molding Departments if the direct method of allocating department costs is used.

Question

The Helix Manufacturing Company has two Production Departments: Mixing and Molding. Each of these two departments uses the services provided by the Utilities and Human Resources Departments, which both support the production functions and each other's functions as well. Helix uses the direct method of allocating these service department costs to the production departments. Utilities are allocated on the basis of hours of department operations and Human Resources is allocated on the basis of departmental direct labor hours. Last period the following costs were recorded:
  Production Department data:
  Required:
a. Determine the amount of Utilities costs allocated to the Mixing and Molding Departments using the direct method of allocating service department costs.
b. Determine the amount of Human Resource costs allocated to the Mixing and Molding Departments using the direct method of allocating service department costs.
c. Determine the total overhead costs of the Mixing and Molding Departments if the direct method of allocating department costs is used.

Quizplus · Accepted Answer

The Answer of The Helix Manufacturing Company has two Production Departments: Mixing and Molding. Each of these two departments uses the services provided by the Utilities and Human Resources Departments, which both support the production functions and each other's functions as well. Helix uses the direct method of allocating these service department costs to the production departments. Utilities are allocated on the basis of hours of department operations and Human Resources is allocated on the basis of departmental direct labor hours. Last period the following costs were recorded:
  Production Department data:
  Required:
a. Determine the amount of Utilities costs allocated to the Mixing and Molding Departments using the direct method of allocating service department costs.
b. Determine the amount of Human Resource costs allocated to the Mixing and Molding Departments using the direct method of allocating service department costs.
c. Determine the total overhead costs of the Mixing and Molding Departments if the direct method of allocating department costs is used.

The Helix Manufacturing Company Has Two Production Departments: Mixing and Molding