1. Human Rescources (hires employees and manages benefits) 2. Duplication ( perf
ID: 2354387 • Letter: 1
Question
1. Human Rescources (hires employees and manages benefits) 2. Duplication ( performs copy services) 3. Janitorial (provides routine cleaning service) 4. Accounting ( provides accounting services) 5. Graphic Design (designs forms) 6. Food Services (provides free breakfast and lunch to employees) The services are used by the company's two subsidiaries Auburn Personal banking and Aubirn Business banking. A.) Sugget allocation bases to be used in allocating the service dept cost to the two subsidiaries. B.) Food Services are used by employees in the human resources dept. Would a share of food services cost be allocated to human resources under the direct method of allocation?Explanation / Answer
1. Human Rescources (hires employees and manages benefits) Number of employees in each subsidiary 2. Duplication ( performs copy services) Number of copies made for each subsidiary 3. Janitorial (provides routine cleaning service) square foot of each subsidiary 4. Accounting ( provides accounting services) Level of dollar sales in each subsidiary 5. Graphic Design (designs forms) Number of forms created for each subsidiary 6. Food Services (provides free breakfast and lunch to employees) Number of employees in each subsidiary The services are used by the company's two subsidiaries Auburn Personal banking and Aubirn Business banking. A.) Sugget allocation bases to be used in allocating the service dept cost to the two subsidiaries. Suggestions for allocation bases are included above. B.) Food Services are used by employees in the human resources dept. Would a share of food services cost be allocated to human resources under the direct method of allocation? Yes, the direct method ensures that each cost is traced directly to the department/subsidiary utilizing the service.
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