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Olympic Deli was opened after the showing of Fat Greek Wedding. The corporate office provides 2 kinds of services (maintenance and personnel) to Olympics 3
Olympic Deli was opened after the showing of Fat Greek Wedding. The corporate office provides 2 kinds of services (maintenance and personnel) to Olympics 3 locations (Winnipeg, Sudbury and Kenora). In a recent accounting period, the direct cost for maintenance was $25,000 and for personnel was $15,000. Maintenance costs are allocated on the basis of square metres, and personnel costs are allocated based on the basis of number of employees. Number of Square Metres Employees Support Departments: Maintenance 1,000 15 Personnel 1,000 8 Operating Departments: Winnipeg 5,000 12 Sudbury 6,000 18 Kenora 3,000 10 a) If Olympic uses the direct method, calculate the total support costs allocated to each restaurant location. b) If Olympic uses the step-down method with personnel allocated first, calculate the total support costs allocated to each restaurant location. 7 T: B I iii TIT $$
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