The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the 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 Assembly. Department Purchasing Maintenance Fabrication Assembly Direct Expenses Number Purchase Orders $ 32,000 18,000 96,000 62,000 16 Square Feet 3,300 2,700
The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the 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 Assembly. Department Purchasing Maintenance Fabrication Assembly Direct Expenses Number Purchase Orders $ 32,000 18,000 96,000 62,000 16 Square Feet 3,300 2,700
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 7P: Distribution of service department costs to production departments using the sequential distribution...
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