Moes operates as two separate divisions - General Restaurant and Catering. These two divisions share the use
Question:
Moes operates as two separate divisions - General Restaurant and Catering. These two divisions share the use of three support departments (account, janitorial and HR). This year, the accounting department had expenses of $83,000, the janitorial has expenses of $33,000, and the HR department had expenses of $67,000. They allocate the shared janitorial costs based on square footage. They allocate the accounting and HR costs based on employees. Below are the relevant square footage and employee numbers:
Square Footage Employees
General Restaurant 2500. 30
Catering 500. 22
Accounting. 300. 6
Janitorial. 100 8
HR 400. 4
Assume that the accounting department provides the most interdepartmental services, followed by janitorial.
Required:
Use the step method, what are the total costs pushed to the General Restaurant from the support departments? To the catering department? Round all interim calculations to two decimal places. Show your work.
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling