Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Number of Square Feet Employees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 The percentage (proportional) usage of the Janitorial Department by the Cutting Department is Oa. 10% Ob. 80% Oc. 9.9% Od. 20%

Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Number of Square Feet Employees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 The percentage (proportional) usage of the Janitorial Department by the Cutting Department is Oa. 10% Ob. 80% Oc. 9.9% Od. 20%

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 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Line Item Description Square Feet Number ofEmployees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is a. 75% b. 18% c. 25% d. 22%
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Square Feet Number ofEmployees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 If the Janitorial Department incurs costs of $200,000, how much of that cost is allocated to the Cutting Department?
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Square Feet Number ofEmployees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 If the Janitorial Department incurs costs of $200,000, how much of that cost is allocated to the Cutting Department? a. $160,000 b. $40,000 c. $19,800 d. $20,000
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Janitorial Department Cafeteria Department Cutting Department Assembly Department Square Feet a. 80% b. 20% Oc. 10% Od. 9.9% Number of Employees 20 10 60 20 100 10,000 2,000 8,000 The percentage (proportional) usage of the Janitorial Department by the Cutting Department is
Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs. It has the following information about its two service departments and two production departments, Cutting and Assembly: Number of Employees 20 10 60 20 Costs Janitorial Department $450,000 Cafeteria Department 200,000 Cutting Department 1,500,000 Assembly Department 3,000,000 Square Feet 100 10,000 2,000 8,000 The percentage (proportional) usage of the Janitorial Department by the Cutting Department is Oa. 20% Ob. 9.9% Oc. 80% Od. 10%
Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs. It has the following information about its two service departments and two production departments, Cutting and Assembly: Costs Square Feet Number ofEmployees Janitorial Department $450,000 100 20 Cafeteria Department 200,000 10,000 10 Cutting Department 1,500,000 2,000 60 Assembly Department 3,000,000 8,000 20 How much of the Janitorial Department's $450,000 costs is allocated to the Cutting Department? a. $45,000 b. $360,000 c. $90,000 d. $44,550
Snowflake Company has two service departments (S1 and S2) and two producing departments (P1 and P2). Department S1 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet. Data on direct department costs, number of employees, and space occupied are as follows: Direct dept. costs Number of employees Space occupied P1 P2 0 S1 S2 P1 $15,000 $22,000 $55,000 0 10 2,000 If Snowflake uses the direct method, what is the ratio representing the portion of Department S2 allocated to P2? 25 5 1,000 3,000 P2 $60,000 30 7,000
Madison Park Co-op, a whole foods grocery and gift shop, provided the following data for its service department cost allocations: Service Departments Administration $ 200,000 Operating Departments Groceries Gifts $ 3,870,000 2,730 490 700 9,200 Departmental costs before allocations Employee-hours Space occupied-square feet Required: Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate Administration first on the basis of employee-hours and then Janitorial based on space occupied. Departmental costs before allocations Allocations: Janitorial $ 60,000 Administration costs Janitorial costs Total costs after allocations Note: Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Service Departments Administration Janitorial 320 1,200 Operating…
Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs. It has the following information about its two service departments and two production departments, Cutting and Assembly: Line Item Description Costs Square Feet Number ofEmployees Janitorial Department $450,000 100 20 Cafeteria Department 200,000 10,000 10 Cutting Department 1,500,000 2,000 60 Assembly Department 3,000,000 8,000 20 The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is a. 22% b. 18% c. 75% d. 25%
Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs. It has the following information about its two service departments and two production departments, Cutting and Assembly: Line Item Description Costs Square Feet Number ofEmployees Janitorial Department $450,000 100 20 Cafeteria Department 200,000 10,000 10 Cutting Department 1,500,000 2,000 60 Assembly Department 3,000,000 8,000 20 The percentage (proportional) usage of the Janitorial Department by the Cutting Department is a. 80% b. 9% c. 10% d. 20%
Allocating Selling and Administrative Expenses using Activity-Based CostingShrute Inc. manufactures office copiers, which are sold to retailers. The price and cost of goods sold for each copier are as follows: Price$1,110per unitCost of goods sold682 Gross profit$428per unit In addition, the company incurs selling and administrative expenses of $414,030. The company wishes to assign these costs to its three major retail customers, The Warehouse, Kosmo Co., and Supply Universe. These expenses are related to its three major nonmanufacturing activities: customer service, sales order processing, and advertising support. The advertising support is in the form of advertisements that are placed by Shrute Inc. to support the retailer's sale of Shrute copiers to consumers. The budgeted activity costs and activity bases associated with these activities are: ActivityBudgeted Activity Cost Activity BaseCustomer service$76,860Number of service requestsSales order processing25,920Number of sales…