Veneer Company has two service departments and two producing departments. The number of employees in each department is: Personnel 10 Cafeteria 25 Producing Department A Producing Department B 364 351 750 The department costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $87,750 during a given period, the amount of cost allocated (rounded to two decimal places) to Department B under the direct method would be:

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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Veneer Company has two service departments and two producing departments. The number of employees in each department is:
Personnel
10
Cafeteria
25
Producing Department A
364
Producing Department B
351
750
The department costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $87,750 during a
given period, the amount of cost allocated (rounded to two decimal places) to Department B under the direct method would be:
Transcribed Image Text:Veneer Company has two service departments and two producing departments. The number of employees in each department is: Personnel 10 Cafeteria 25 Producing Department A 364 Producing Department B 351 750 The department costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $87,750 during a given period, the amount of cost allocated (rounded to two decimal places) to Department B under the direct method would be:
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