FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. Operating costs No. of purchase orders Sq. ft. of space Multiple Choice O $6,400. $9,900. $8,100. $9,000. $25,600. Purchasing Maintenance Fabrication Assembly $32,000 $18,000 $96,000 16 3,300 $62,000 4 2,700arrow_forwardAssume a company provided the following information: Departmental costs Number of employees Square feet of space occupied Multiple Choice If the company (1) uses the direct method to allocate service department costs to operating departments, (2) allocates Cafeteria costs based on the number of employees, and (3) allocates Janitorial costs based on square feet of space of occupied, then the cost allocated from the Cafeteria Department to the Lab Department is closest to: C $58,338. $63,467. $76,800. Service Departments Operating Departments Cafeteria Janitorial Lab Tech $232,000 $950,000 32 68 $240,000 $140,000 20 2,000 11,000 9,000 $116,800. 10 3,000arrow_forwardDogarrow_forward
- Question Content Area Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Line Item Description Units Setups Inspections Assembly (dlh) Hooks 4,000 1 3 1 Nooks 8,000 2 2 1 Activity Total Activity - Base Usage Budgeted Activity Cost Setups 20,000 $60,000 Inspections 24,000 120, 000 Assembly (dlh) 28,000 420,000 The total factory overhead to be allocated to Nooks is a. $600, 000 b. $488,000 c. $400, 000 d. $300,000arrow_forwardPhysical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: Operating Department Service Department Physical General Sales Management $ 33,384 $ 68,070 Plant After-Sales $ 232,830 Departmental costs Employee time Space occupied $ 292,500 33,000 6,000 5,000 40,000 10,000 5,000 40,000 28,000 General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations is closest to: Multiple Choice $321,410 $332,888 $335,534 $335,670arrow_forwardSupport department cost allocation-direct method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant detail Support Department Cost Driver Square footage to be serviced Janitorial Department Cafeteria Department Number of employees Janitorial Department $310,000 Cafeteria Department $169,000 5,000 3 Janitorial Department cost allocation. Cafeteria Department cost allocation Cutting Department $1,504,000 Department costs Square feet 50 1,000 Number of employees 10 30 Allocate the support department costs to the production departments using the direct method. Cutting Department Assembly Department $580,000 4,000 10 Assembly Departmentarrow_forward
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