grial cing ooking for in the applicant's resume and appli will be nting and finance professionals. Katie's current proj- accounting position at PepsiCo. Identify the techccess in account Do you think these skills will be difficult to find in candidates? If so, w the position. tight be able to develop these skills in-house? to. LO5 cation materials that will likely lead to success in n candidates? If so, what are some ways Cost Allocation Bases and Direct Method Allocations Selecting Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred LC Plant manager's salary and office expense Plant nurse's salary and office expense. Plant depreciation Machine maintenance Plant cafeteria cost subsidy $30,600 6,600 .. . 8,000 7,200 $68,000 The following additional data have been collected for the three producing departments: P1 P2 P3 Number of employees 10 Space occupied (square feet).... Machine hours . Number of nurse office visits. 2,000 5,000 3,000 1,600 4,000 750 4,800 8,000 3,200 30 35 10 Required a. Group the indirect cost items into cost pools based on the nature of the costs and their common basi total January costs in the pool. (Hint: A cost pool may consist of one or more cost items.) lected in requirement (a). using a plantwide rate based on direct labor hours? Based on machine hours? for allocation. Identify the most appropriate allocation basis for each cost pool and determine th b. Allocate the cost pools directly to the three producing departiments using the allocation hases s c. How much indirect cost would be allocated to each producing department if Seattle Company w Maintenance and Information Technology (IT), t ments, Mixing and Packaging. The following data have been collected d Comment on the benefits of allocating costs in pools compared with using a plantwide rate. Evaluating Allocation Bases and Direct Method Allocations Braht serve two producing z Company has two service departments depart