Question
1. Veneer Company has two service departments and two producing departments. The number of employees in each department is: Personnel 10 Cafeteria 25 Producing Department
1. 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 | 422 |
Producing Department B | 133 |
590 | |
The department costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $67,850 during a given period, the amount of cost allocated to Department B under the direct method would be:
2.
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $792,000 are allocated on the basis of machine hours. The Accounting Department's costs of $171,600 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $250,000 and $450,000, respectively.
Maint | Acctg | A | B | |
Machine hours | 590 | 100 | 3,600 | 360 |
Number of employees | 2 | 2 | 8 | 4 |
What is the Maintenance Department's cost allocated to Department A using the direct method?
3 and 4:
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $489,600 are allocated on the basis of machine hours. The Accounting Department's costs of $122,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $210,000 and $410,000, respectively.
Maint | Acctg | A | B | |
Machine hours | 895 | 80 | 2,400 | 320 |
Number of employees | 2 | 2 | 8 | 4 |
3. What is the Accounting Department's cost allocated to Department B using the direct method?
4. What is the Maintenance Department's cost allocated to Department B using the step method and assuming the Maintenance Department's costs are allocated first?
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