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Allocation Use the following information to answer questions below The three service departments (indirect costs) are payroll, sales supervision and maintenance. The actual costs of these departments are as follows: Salaries and wages Utilities Supplies Payroll $41,000 $ $3,500 $ $4,000 Machining Assembly $ The two operating departments and their statistics are as follows: Number of Square Footage 14,500 4,600 Sales Supervision 82,000 1,600 2,400 Employees 78 52 $62,000 $ 2,400 $ 7,500 Net Assets 420,000 280,000 Maintenance

Allocation Use the following information to answer questions below The three service departments (indirect costs) are payroll, sales supervision and maintenance. The actual costs of these departments are as follows: Salaries and wages Utilities Supplies Payroll $41,000 $ $3,500 $ $4,000 Machining Assembly $ The two operating departments and their statistics are as follows: Number of Square Footage 14,500 4,600 Sales Supervision 82,000 1,600 2,400 Employees 78 52 $62,000 $ 2,400 $ 7,500 Net Assets 420,000 280,000 Maintenance

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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Allocation Use the following information to answer questions below The three service departments (indirect costs) are payroll, sales supervision and maintenance. The actual costs of these departments are as follows: Payroll Salaries and wages Utilities Supplies $41,000 $3,500 $4,000 Machining Assembly Sales Supervision 82,000 1,600 $ 2,400 $ $ The two operating departments and their statistics are as follows: Square Number of Footage 14,500 4,600 Employees 78 52 $62,000 $ 2,400 $ 7,500 Net Assets 420,000 280,000 Maintenance
Transcribed Image Text:Allocation Use the following information to answer questions below The three service departments (indirect costs) are payroll, sales supervision and maintenance. The actual costs of these departments are as follows: Payroll Salaries and wages Utilities Supplies $41,000 $3,500 $4,000 Machining Assembly Sales Supervision 82,000 1,600 $ 2,400 $ $ The two operating departments and their statistics are as follows: Square Number of Footage 14,500 4,600 Employees 78 52 $62,000 $ 2,400 $ 7,500 Net Assets 420,000 280,000 Maintenance
If you allocate Maintenance department costs by square footage, how much of the maintenance cost will be allocated to the assembly department? 1) 17,360 2) 54,583 3) 35,950 4) 45,474
Transcribed Image Text:If you allocate Maintenance department costs by square footage, how much of the maintenance cost will be allocated to the assembly department? 1) 17,360 2) 54,583 3) 35,950 4) 45,474
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