Assume a company provided the following information: Departmental costs. Number of employees Square feet of space occupied Service Departments Operating Departments Cafeteria Janitorial Lab $240,000 $140,000 $232,000 32 11,000 10 3,000 20 2,000 Tech $950,000 68 9,000 If the company (1) uses the direct method to allocate service department costs to operating departments, (2) allocates Cafeteria costs based on the number of employees, and (3) allocates Janitorial costs based on square feet of space of occupied, then the cost allocated from the Cafeteria Department to the Lab Department is closest to:
Assume a company provided the following information: Departmental costs. Number of employees Square feet of space occupied Service Departments Operating Departments Cafeteria Janitorial Lab $240,000 $140,000 $232,000 32 11,000 10 3,000 20 2,000 Tech $950,000 68 9,000 If the company (1) uses the direct method to allocate service department costs to operating departments, (2) allocates Cafeteria costs based on the number of employees, and (3) allocates Janitorial costs based on square feet of space of occupied, then the cost allocated from the Cafeteria Department to the Lab Department is closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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