Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1...
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Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repairs HR 108 Repairs HR IT IT 0% 20% M1 40% 35% 20% M2 60% 35% 70% 10% 0% 10% The direct costs of the service departments in the previous period were $32,000 for Repairs, $51,600 for HR, and $72,000 for IT. Required: Use the step method to allocate the service department costs to the production departments. Allocate HR costs first, followed by IT, and then Repairs. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) HR IT M1 M2 Repairs $ 32,000 $ Service department costs 51,600 $ 72,000 HR allocation IT allocation Repairs allocation Total costs allocated 32,000 $ 51,600 TA 72,000 $ 0 $ 0
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