Departmental information for the four departments at Samoa Industries is provided below.   Total Cost   Cost Driver   Square Feet   Number of Employees Janitorial $150,000      Square footage serviced   200      40          Cafeteria 50,000      Number of employees   20,000      12          Cutting 1,125,000          4,000      120          Assembly 1,100,000          16,000      40          The Janitorial and Cafeteria departments are support departments. Determine the dollar amount of the Janitorial Department costs to be allocated to the (a) Cutting and (b) Assembly departments using the direct method. a. Cutting Department     b. Assembly Department

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 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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Departmental information for the four departments at Samoa Industries is provided below.

 

Total Cost

 

Cost Driver

 

Square Feet

 

Number of Employees

Janitorial

$150,000   

 

Square footage serviced

 

200   

 

40         

Cafeteria

50,000   

 

Number of employees

 

20,000   

 

12         

Cutting

1,125,000   

 

 

 

4,000   

 

120         

Assembly

1,100,000   

 

 

 

16,000   

 

40         

The Janitorial and Cafeteria departments are support departments. Determine the dollar amount of the Janitorial Department costs to be allocated to the (a) Cutting and (b) Assembly departments using the direct method.

a. Cutting Department

 

 

b. Assembly Department

 

 

 

 

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