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12. The Thomas Company has two service departments and two operating departments. The following data are available for a recent period: Cafeteria Overhead costs . $80,000 Service Departments Custodial $60,000 Operating Departments Assembly $75,000 Finishing $86,500 Number of .. 30 employees. Square feet occupied.. 18,000 Thomas allocates service department costs by the step method in the following order: Cafeteria costs are allocated first, based on 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: A) $156,800 B) $151,300 C) $154,600 D) $138,450 E) None of above. 60 360 180 25,000 60,000 90,000

12. The Thomas Company has two service departments and two operating departments. The following data are available for a recent period: Cafeteria Overhead costs . $80,000 Service Departments Custodial $60,000 Operating Departments Assembly $75,000 Finishing $86,500 Number of .. 30 employees. Square feet occupied.. 18,000 Thomas allocates service department costs by the step method in the following order: Cafeteria costs are allocated first, based on 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: A) $156,800 B) $151,300 C) $154,600 D) $138,450 E) None of above. 60 360 180 25,000 60,000 90,000

FINANCIAL ACCOUNTING
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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12. The Thomas Company has two service departments and two operating departments. The following data are available for a recent period: Service Departments Cafeteria $80,000 Operating Departments Assembly $75,000 Finishing $86,500 Custodial Overhead costs. $60,000 Number of employees . Square feet occupied.. 18,000 Thomas allocates service department costs by the step method in the following order: Cafeteria costs are allocated first, based on 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: A) $156,800 B) $151,300 C) $154,600 D) $138,450 E) None of above. 30 60 360 180 25,000 60,000 90,000
Transcribed Image Text:12. The Thomas Company has two service departments and two operating departments. The following data are available for a recent period: Service Departments Cafeteria $80,000 Operating Departments Assembly $75,000 Finishing $86,500 Custodial Overhead costs. $60,000 Number of employees . Square feet occupied.. 18,000 Thomas allocates service department costs by the step method in the following order: Cafeteria costs are allocated first, based on 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: A) $156,800 B) $151,300 C) $154,600 D) $138,450 E) None of above. 30 60 360 180 25,000 60,000 90,000
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