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Fact pattern: Gemini Inc., has two service departments (the Systems Department and the Facilities Department) that provide support to the companys three production departments (Machining

Fact pattern: Gemini Inc., has two service departments (the Systems Department and the Facilities Department) that provide support to the companys three production departments (Machining Department, Assembly Department, and Finishing Department). The overhead costs of the Systems Department are allocated to other departments on the basis of computer usage hours. The overhead costs of the Facilities Department are allocated based on square feet occupied (in thousands). Other information pertaining to Logo is as follows:

Computer

Square Feet

Department

Overhead

Usage Hours

Occupied

Systems

$120,000

350

1,750

Facilities

24,000

1,050

1,050

Machining

240,000

4,200

3,500

Assembly

330,000

2,100

5,250

Finishing

372,000

3,150

8,750

Total

10,850

20,300

Logo employs the direct method of allocating service department costs. The overhead of the Systems Department would be allocated by dividing the overhead amount by

A

1,400 hours

B

10,500 hours

C

9,450 hours

D

10,850 hours

How much of the Facilities overhead would the Assembly Department receive?

A

$7,200

B

$6,207

C

$5,333

D

$6,545

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