Below is a partially completed departmental expense allocation spreadsheet for Eastwood Corp. It shows the total amounts of direct and indirect expenses for its four departments. ⚫ Personnel department expenses are allocated to operating departments based on the number of employees. ⚫ Building Services department expenses are allocated to operating departments based on square footage. Compute the amount of Building Services expense to be allocated to the Production department. Personnel Building Services Production Assembly Departments Operating Costs ($) 45,000 Number of Employees 12 Square Footage A) $18,000 B) $24,750 C) $22,500 D) $27,500 36,000 125,000 95,000 18 4 5,500 2,500
Below is a partially completed departmental expense allocation spreadsheet for Eastwood Corp. It shows the total amounts of direct and indirect expenses for its four departments. ⚫ Personnel department expenses are allocated to operating departments based on the number of employees. ⚫ Building Services department expenses are allocated to operating departments based on square footage. Compute the amount of Building Services expense to be allocated to the Production department. Personnel Building Services Production Assembly Departments Operating Costs ($) 45,000 Number of Employees 12 Square Footage A) $18,000 B) $24,750 C) $22,500 D) $27,500 36,000 125,000 95,000 18 4 5,500 2,500
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 24E: Refer to the data in Exercise 7.22. The support departments are ranked in order of highest cost to...
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
Transcribed Image Text:Below is a partially completed departmental expense allocation spreadsheet for
Eastwood Corp. It shows the total amounts of direct and indirect expenses for
its four departments.
⚫ Personnel department expenses are allocated to operating departments
based on the number of employees.
⚫ Building Services department expenses are allocated to operating
departments based on square footage.
Compute the amount of Building Services expense to be allocated to the
Production department.
Personnel Building Services Production Assembly
Departments
Operating Costs ($)
45,000
Number of Employees 12
Square Footage
A) $18,000
B) $24,750
C) $22,500
D) $27,500
36,000
125,000
95,000
18
4
5,500
2,500
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