Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Lucas Manufacturing Company has two production departments (fabrication and assembly) and three service departments (general factory administration, factory maintenance, and factory cafeteria). A summary

image text in transcribedimage text in transcribed

The Lucas Manufacturing Company has two production departments (fabrication and assembly) and three service departments (general factory administration, factory maintenance, and factory cafeteria). A summary of costs and other data for each department, prior to allocation of service department costs for the year ended June 30, appears below: llocation of service department costs for the year ended June 30. appears belowa The costs of the general factory administration department, factory maintenance department, and factory cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively General Factory Factory Factory Fabrication Assembly Admin. Maint. Cafeteria Direct labor costs: $1,950,000 $2,050,000 Direct material costs: $3,130,000 950,000 Factory overhead costs: $1,650,000 $1,850,000 $80,000 $67,500 $58,000 Direct labor hours: 237,690 387,810 Number of employees:160 128 20 42 25 Sq. footage occupied 20,000 30,000 2,400 2,000 4,800 Assuming that Lucas elects to use the sequential method to distribute service department costs (starting with the factory cafeteria), what would be the amount of factory cafeteria costs that would be allocated to the factory maintenance department

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions