Question
Breakfast Bars has two support departments, Information Systems and Personnel. The Information Systems Department costs of $120,000 are allocated on the basis of hours used.
Breakfast Bars has two support departments, Information Systems and Personnel. The
Information Systems Department costs of $120,000 are allocated on the basis of
hours used. The Personnel Department costs of $30,000 are allocated based on
the number of employees. Costs of the two operating departments are $60,000 for
Fruit Bars and $90,000 for Nut Bars. Data on information systems hours used
and number of employees are as follows:
Information
Allocation Bases: Systems Personnel Fruit
Nut
Information sy stems hours used 600 600 720 480
Number of employees 10 20 40 120
What is the cost of the Information Systems Department allocated to Fruit
using the direct method
Breakfast Bars has two support departments, Information Systems and Personnel. The
Information Systems Department costs of $120,000 are allocated on the basis of
hours used. The Personnel Department costs of $30,000 are allocated based on
the number of employees. Costs of the two operating departments are $60,000 for
Fruit Bars and $90,000 for Nut Bars. Data on information systems hours used
and number of employees are as follows:
Information
Allocation Bases: Systems Personnel Fruit
Nut
Information sy stems hours used 600 600 720 480
Number of employees 10 20 40 120
What is the cost of the Information Systems Department allocated to Fruit
using the direct method
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