Assigning Traceable Fixed Expenses Selected data for Colony Company, which operates three departments, follow: Department A Department B Department C Inventory $100,000 $360,000 $140,000 Equipment (average cost) $900,000 $540,000 $360,000 Payroll $607,500 $540,000 $202,500 Square feet of floor space 27,000 13,500 4,500 During the year, the company's fixed expenses included the following: Depreciation on equipment $150,000 Real estate taxes 45,000 Personal property taxes (on inventory and equipment) Personnel department expenses 72,000 75,000 Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed exp traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments. Do not round until your final answer. Round final answer to the nearest whole number. Depreciation Real estate taxes Personal property taxes Personnel dept. expenses Department A Department B Department C 0 $ 0 $ 0 0 0 0 0 0 0 0
Assigning Traceable Fixed Expenses Selected data for Colony Company, which operates three departments, follow: Department A Department B Department C Inventory $100,000 $360,000 $140,000 Equipment (average cost) $900,000 $540,000 $360,000 Payroll $607,500 $540,000 $202,500 Square feet of floor space 27,000 13,500 4,500 During the year, the company's fixed expenses included the following: Depreciation on equipment $150,000 Real estate taxes 45,000 Personal property taxes (on inventory and equipment) Personnel department expenses 72,000 75,000 Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed exp traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments. Do not round until your final answer. Round final answer to the nearest whole number. Depreciation Real estate taxes Personal property taxes Personnel dept. expenses Department A Department B Department C 0 $ 0 $ 0 0 0 0 0 0 0 0
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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