The Maryville Construction Company occupies 90,200 square feet for construction of mobile homes. There are two manufacturing departments, finishing and assembly, and four service departments labeled S1, S2, S3, and S4. Information relevant to Maryville is as follows: Allocation Department Area used S1 S2 S3 S4 Finishing Assembly S1 17,400 --- 0.10 0.20 --- 0.20 0.50 S2 4,450 --- --- 0.30 0.30 --- 0.40 S3 8,900 0.20 0.20 --- 0.30 0.20 0.10 S4 4,450 0.20 0.30 0.20 --- 0.10 0.20 Finishing 24,750 --- --- --- --- --- --- Assembly 30,250 --- --- --- --- --- --- Rent paid for the area used is $724,000. How much rent is allocable to the assembly department using the direct method of allocation? Multiple Choice $325,800 $398,200 $344,386 $242,805

The Maryville Construction Company occupies 90,200 square feet for construction of mobile homes. There are two manufacturing departments, finishing and assembly, and four service departments labeled S1, S2, S3, and S4. Information relevant to Maryville is as follows: Allocation Department Area used S1 S2 S3 S4 Finishing Assembly S1 17,400 --- 0.10 0.20 --- 0.20 0.50 S2 4,450 --- --- 0.30 0.30 --- 0.40 S3 8,900 0.20 0.20 --- 0.30 0.20 0.10 S4 4,450 0.20 0.30 0.20 --- 0.10 0.20 Finishing 24,750 --- --- --- --- --- --- Assembly 30,250 --- --- --- --- --- --- Rent paid for the area used is $724,000. How much rent is allocable to the assembly department using the direct method of allocation? Multiple Choice $325,800 $398,200 $344,386 $242,805

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 8E: A manufacturing company has two service and two production departments. Building Maintenance and...

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	Allocation
S1	17,400	---	0.10	0.20	---	0.20	0.50
S2	4,450	---	---	0.30	0.30	---	0.40
S3	8,900	0.20	0.20	---	0.30	0.20	0.10
S4	4,450	0.20	0.30	0.20	---	0.10	0.20
Finishing	24,750	---	---	---	---	---	---
Assembly	30,250	---	---	---	---	---	---

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Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Materials Personnel Manufacturing Packaging Employees Square Feet Asset Values $ 7,900 4,740 45,820 20,540 $ 79,000 38 19 76 57 64,750 9,250 92,500 18,500 Total 190 185,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Cost Allocation Base $ 84,400 Number of employees 69,000 Square feet occupied 32,000 Asset values $ 185,400 Insurance Total Allocate each of the three indirect expenses to the four departments. Supervision Cost to be Allocated Allocation Base Percent of Allocation Base Allocated Cost expenses Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals Cost to be Allocated Utilities Allocation Base Percent of Allocation Base Allocated Cost Department Numerator Denominator % of Total…
Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Square Feet Asset Values Employees Materials 40 60,000 $ 9,750 Personnel 8 7,500 1,300 Manufacturing Packaging 64 67,500 33,800 48 15,000 20,150 Total 160 150,000 $ 65,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Insurance Total Cost $ 83,000 Number of employees Allocation Base 55,000 Square feet occupied 25,000 Asset values $ 163,000 Allocate each of the three indirect expenses to the four departments.
Western Services has three service departments: Information Systems (IS), Personnel, and Administration. There are two operating departments: Residential and Commercial. A summary of costs and other data for each department prior to allocation of service department costs for the latest period follows: IS Personnel Administration Residential Commercial Number of IS service tickets 130 160 115 1,410 940 Number of employees 75 80 67 138 162 Square footage occupied 3,900 8,000 3,800 16,100 69,500 The costs of the service departments and the allocation basis for each department follow. Department Direct Cost Allocation Base Information Systems (IS) $ 25,000 IS service tickets Personnel 32,000 Employees Administration 28,700 Square footage occupied d. Assuming that the company allocates service department costs to other departments using the step method (starting with Administration and then IS), What amount of IS Department costs is allocated to Administration?
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University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Machine-hours Labor-hours Department direct costs Maintenance. Service department costs Maintenance allocation Personnel allocation Total costs allocated 700 $4,800 Personnel 1,700 $14,800. Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) 5 Maintenance Personnel Printing Developing Printing Developing 1,700 3,400 700 2,800 $16,000 $13,100. 0 $ 0$ 0 $ 0
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	Allocation
Department	Area used	S1	S2	S3	S4	Finishing	Assembly
S1	17,400	---	0.10	0.20	---	0.20	0.50
S2	4,450	---	---	0.30	0.30	---	0.40
S3	8,900	0.20	0.20	---	0.30	0.20	0.10
S4	4,450	0.20	0.30	0.20	---	0.10	0.20
Finishing	24,750	---	---	---	---	---	---
Assembly	30,250	---	---	---	---	---	---