12. The Thomas Company has two service departments and two operating departments. The following data are available for a recent period: A) $156,800 B) $151,300 Service Departments Cafeteria C) $154,600 D) $138,450 E) None of above. $80,000 30 Op. Departments Finishing Custodialtingissembly $60,000 60 Overhead costs. $75,000 Number of employees.. 360 18,000 25,000 60,000 90,000 Square feet occupied.... Thomas allocates service department costs by the step method in the following order: Cafeteria costs are allocated first, based on the number of employees; Custodial Department costs are allocated second, based on square feet occupied. No distinction is made between fixed and variable costs. After all allocations, total amount of overhead cost contained in the Finishing Department will be: $86,500 180

12. The Thomas Company has two service departments and two operating departments. The following data are available for a recent period: A) $156,800 B) $151,300 Service Departments Cafeteria C) $154,600 D) $138,450 E) None of above. $80,000 30 Op. Departments Finishing Custodialtingissembly $60,000 60 Overhead costs. $75,000 Number of employees.. 360 18,000 25,000 60,000 90,000 Square feet occupied.... Thomas allocates service department costs by the step method in the following order: Cafeteria costs are allocated first, based on the number of employees; Custodial Department costs are allocated second, based on square feet occupied. No distinction is made between fixed and variable costs. After all allocations, total amount of overhead cost contained in the Finishing Department will be: $86,500 180

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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