Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources...
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Accounting
Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR), Legal, and Testing. In the most recent period, the following costs and service department usage ratios were recorded: Supplying department Human Resources Legal Testing Domestic Global Human Resources 0, 15%, 10%, 25%, 50% Legal 10%, 0, 0, 30%, 60% Testing 10%, 0, 0, 45%, 45% Direct Cost $264,500, $190,000, $90,000, $538,000, $487,000 Allocate the service department costs to the two operating departments using the reciprocal method.
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