Renton Company has two operating (production) departments supported by a number of service departments. Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Machining Department 724,404 327,600 Depreciation Maintenance 122,400 20,200 23,900 20,700 7,000 The company has also incurred the following indirect costs. Salaries Insurance Utilities $36,700 5,500 2,000 13,800 29,400 71,100 Assembly Department $356,796 121,200 Depreciation Maintenance Office expenses Indirect costs are allocated as follows: 85,700 11,000 13,900 11,500 4,700 • salaries on the basis of sales, • office expenses on the basis of the number of employees, • insurance, utilities, depreciation, and maintenance on the basis of square footage. Additional information about the departments follows: Department Square Footage Number of employees Machining 14,535 78 Assembly 4,845 52 What is the Departmental Contribution to Overhead for the Assembly Dept.?
Renton Company has two operating (production) departments supported by a number of service departments. Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Machining Department 724,404 327,600 Depreciation Maintenance 122,400 20,200 23,900 20,700 7,000 The company has also incurred the following indirect costs. Salaries Insurance Utilities $36,700 5,500 2,000 13,800 29,400 71,100 Assembly Department $356,796 121,200 Depreciation Maintenance Office expenses Indirect costs are allocated as follows: 85,700 11,000 13,900 11,500 4,700 • salaries on the basis of sales, • office expenses on the basis of the number of employees, • insurance, utilities, depreciation, and maintenance on the basis of square footage. Additional information about the departments follows: Department Square Footage Number of employees Machining 14,535 78 Assembly 4,845 52 What is the Departmental Contribution to Overhead for the Assembly Dept.?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Renton Company has two operating (production) departments supported by a
number of service departments.
Sales
Cost of goods sold
Direct expenses:
Salaries
Insurance
Utilities
Machining Department
724,404
327,600
Depreciation
Maintenance
122,400
20,200
23,900
20,700
7,000
The company has also incurred the following indirect costs.
Salaries
Insurance
Utilities
$36,700
5,500
2,000
13,800
29,400
71,100
Assembly Department
$356,796
121,200
Depreciation
Maintenance
Office expenses
Indirect costs are allocated as follows:
85,700
11,000
13,900
11,500
4,700
• salaries on the basis of sales,
• office expenses on the basis of the number of employees,
• insurance, utilities, depreciation, and maintenance on the basis of square
footage.
Additional information about the departments follows:
Department Square Footage Number of employees
Machining
14,535
78
Assembly
4,845
52
What is the Departmental Contribution to Overhead for the Assembly Dept.?
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