Arbon Company has three service departments and two operating departments. Selected data concerning the five departments...
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Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Costs Number of employees Square metres of space occupied Machine-hours Service Departments Operating Departments Administrative $92,000 Janitorial $67,800 Equipment Maintenance 80 300 60 1,200 $36,000 240 Prep $256,100 Finishing Total $498,600 $950,500 1,000 $600 2,000 300 1,280 7,000 11,500 26,000 54,000 80,000 The company allocates service department costs by the step-down method in the following order: Administrative (number of employees), Janitorial (space occupied), and Equipment Maintenance (machine-hours). Required: Using the step-down method, allocate the service department costs to the operating departments. (Negative amounts should be indicated by a minus sign.) Departmental costs before allocations Allocations: Administrative Janitorial Service Departments Operating Departments Administrative Janitorial Maintenance Prep Finishing Total Maintenance Total costs after allocation $ 0 $ 0 $ 69 + 0 $ 0 $ Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Costs Number of employees Square metres of space occupied Machine-hours Service Departments Operating Departments Administrative $92,000 Janitorial $67,800 Equipment Maintenance 80 300 60 1,200 $36,000 240 Prep $256,100 Finishing Total $498,600 $950,500 1,000 $600 2,000 300 1,280 7,000 11,500 26,000 54,000 80,000 The company allocates service department costs by the step-down method in the following order: Administrative (number of employees), Janitorial (space occupied), and Equipment Maintenance (machine-hours). Required: Using the step-down method, allocate the service department costs to the operating departments. (Negative amounts should be indicated by a minus sign.) Departmental costs before allocations Allocations: Administrative Janitorial Service Departments Operating Departments Administrative Janitorial Maintenance Prep Finishing Total Maintenance Total costs after allocation $ 0 $ 0 $ 69 + 0 $ 0 $
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Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
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