Question
Support departments: Building and grounds $35,000 Personnel 1,064 General plant administration 21,300 Cafeteria: Operating loss 3,204 Storeroom 3,388 $63,956 Operating departments: Machining $33,000 Assembly 48,900
| Support departments: | ||
| Building and grounds | $35,000 | |
| Personnel | 1,064 | |
| General plant administration | 21,300 | |
| Cafeteria: Operating loss | 3,204 | |
| Storeroom | 3,388 | $63,956 |
| Operating departments: | ||
| Machining | $33,000 | |
| Assembly | 48,900 | 81,900 |
| Total for support and operating departments | $145,856 |
Direct
Square Feet of
Manufacturing
Number of
Floor Space
Manufacturing
Number of
Department
Labor-Hours
Employees
Occupied
Labor-Hours
Requisitions
Building and grounds
0
0
0
0
0
Personnel*
0
0
8,400
0
0
General plant administration
0
42
12,600
0
0
Cafeteria: operating loss
0
14
5,600
1,000
0
Storeroom
0
28
39,200
2,000
0
Machining
6,000
70
56,000
6,000
6,000
Assembly
6,000
126
128,200
6,600
2,000
Total
12,000
280
250,000
15,600
8,000
*Basis used is number of employees
Using the step-down method, allocate support-department costs. Allocate the costs of the support departments in the order given in this problem. (Round all indirect allocation rates to the nearest cent and all other computations to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.)
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Accounting Texts And Cases
Authors: Robert Anthony, David Hawkins, Kenneth A. Merchant
12th Edition
0073100919, 978-0073100913
