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:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume a company provided the following information:
Departmental costs
Number of employees
Square feet of space occupied
Multiple Choice
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:
C
$58,338.
$63,467.
$76,800.
Service Departments Operating Departments
Cafeteria Janitorial
Lab
Tech
$232,000 $950,000
32
68
$240,000
$140,000
20
2,000
11,000
9,000
$116,800.
10
3,000
Transcribed Image Text:Assume a company provided the following information: Departmental costs Number of employees Square feet of space occupied Multiple Choice 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: C $58,338. $63,467. $76,800. Service Departments Operating Departments Cafeteria Janitorial Lab Tech $232,000 $950,000 32 68 $240,000 $140,000 20 2,000 11,000 9,000 $116,800. 10 3,000
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