Question
CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that incurred $20,400 of costs during
CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that incurred $20,400 of costs during the period. If allocated maintenance cost is based on floor space occupied by each of the operating departments, compute the amount of maintenance cost allocated to the Baking Department.
Mixing | Baking | Packaging | ||||||||||||||
Direct costs | $ | 36,000 | $ | 30,000 | $ | 24,000 | ||||||||||
Sq. ft. of space | 2,500 | 3,750 | 1,250 | |||||||||||||
Multiple Choice
$272.
$816.
$10,000.
$13,950.
$10,200.
Flamingos, Inc. has four departments. The Administrative Department costs are allocated to the other three departments based on the number of employees in each and the Maintenance Department costs are allocated to the Assembly and Packaging Departments based on their occupied space. Data for these departments follows:
Admin. | Maintenance | Assembly | Packaging | |||||||||||
Operating costs | $ | 47,000 | $ | 32,000 | $ | 87,000 | $ | 62,000 | ||||||
No. of employees | 3 | 12 | 5 | |||||||||||
Sq. ft. of space | 2,400 | 3,600 | ||||||||||||
The total amount of the Administrative Department's cost that would eventually be allocated to the Packaging Department is:
Multiple Choice
$5,660.
$14,150.
$11,750.
$23,030.
$15,980.
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