Question
Yahia Inc. has 3 support departments and 2 operating departments. Support cost and allocation base information is provided below Support Departments Operating Departments Maintenance Food
Yahia Inc. has 3 support departments and 2 operating departments. Support cost and allocation base information is provided below
Support Departments Operating Departments
Maintenance Food Service Personnel Casting Finishing
Direct support costs SAR10,000 SAR20,000 SAR15,000 SAR90,000 SAR85,000
Allocation bases:
Employees 10 8 9 20 30
Square feet 2,000 3,000 1,000 10,000 5,000
Maintenance costs are allocated on the basis of square feet, and the other support costs are allocated on the basis of number of employees.
If the direct method of allocation is used, calculate the maintenance department cost that will be allocated to:
1) Personnel
2) Casting
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