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E7-10 Departmental Distribution of Actual Overhead-Step Method. The Thompson Mining Corporation has producing departments A and B. and service departments C, D; E, and F. Costs are distributed from F first, D second, C third, and E fourth. It is the company's policy that once a service department's costs have been distributed, no costs from other service departments are to be distributed to it. F distributes one half of its cost to A and the remainder to D and E on the basis of the number of employees. D distributes its costs on the basis of investment in equipment, C's are assigned to B, and E's are distributed on the basis of floor space. The following information pertains to the month just ended: Square Feet 2,000 3,000 4,000 2,000 1,500 _2,500 15,000 Investment in Equipment $170,000 80,000 130,000 70,000 , 50,000 30,000 K $530,000 Employees Department A. в. c. D. E, F. Cost $15,000 12,000 12,000 8,000 2,000 2.000 $51,000 40 20 20 30 20 10 140 ....... Total Required: Distribute service department overhead.

E7-10 Departmental Distribution of Actual Overhead-Step Method. The Thompson Mining Corporation has producing departments A and B. and service departments C, D; E, and F. Costs are distributed from F first, D second, C third, and E fourth. It is the company's policy that once a service department's costs have been distributed, no costs from other service departments are to be distributed to it. F distributes one half of its cost to A and the remainder to D and E on the basis of the number of employees. D distributes its costs on the basis of investment in equipment, C's are assigned to B, and E's are distributed on the basis of floor space. The following information pertains to the month just ended: Square Feet 2,000 3,000 4,000 2,000 1,500 _2,500 15,000 Investment in Equipment $170,000 80,000 130,000 70,000 , 50,000 30,000 K $530,000 Employees Department A. в. c. D. E, F. Cost $15,000 12,000 12,000 8,000 2,000 2.000 $51,000 40 20 20 30 20 10 140 ....... Total Required: Distribute service department overhead.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E7-10 Departmental Distribution of Actual Overhead-Step Method. The Thompson Mining Corporation has producing departments A and B. and service departments C, D; E, and F. Costs are distributed from F first, D second, C third, and E fourth. It is the company's policy that once a service department's costs have been distributed, no costs from other service departments are to be distributed to it. F distributes one half of its cost to A and the remainder to D and E on the basis of the number of employees. D distributes its costs on the basis of investment in equipment, C's are assigned to B, and E's are distributed on the basis of floor space. The following information pertains to the month just ended: Investment in Square Feet Equipment Employees 40 20 20 30 20 10 Department Cost $15,000 12,000 12,000 8,000 2,000 2,000 $51,000 2,000 3,000 4,000 2,000 1,500 2,500 15,000 $170,000 80,000 130,000 70,000 A 50,000 30,000 K $530,000 A c. D. E, F. ********* 140 Total Required: Distribute service department overhead. Ceanne eapner
Transcribed Image Text:E7-10 Departmental Distribution of Actual Overhead-Step Method. The Thompson Mining Corporation has producing departments A and B. and service departments C, D; E, and F. Costs are distributed from F first, D second, C third, and E fourth. It is the company's policy that once a service department's costs have been distributed, no costs from other service departments are to be distributed to it. F distributes one half of its cost to A and the remainder to D and E on the basis of the number of employees. D distributes its costs on the basis of investment in equipment, C's are assigned to B, and E's are distributed on the basis of floor space. The following information pertains to the month just ended: Investment in Square Feet Equipment Employees 40 20 20 30 20 10 Department Cost $15,000 12,000 12,000 8,000 2,000 2,000 $51,000 2,000 3,000 4,000 2,000 1,500 2,500 15,000 $170,000 80,000 130,000 70,000 A 50,000 30,000 K $530,000 A c. D. E, F. ********* 140 Total Required: Distribute service department overhead. Ceanne eapner
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