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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The following is a partially completed lower section of a departmental expense allocation spreadsheet for Superior Inc. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Assembly. Purchasing Maintenance Fabrication Assembly Operating costs $43,000 $24,600 $107,000 $73,000 No. of purchase orders 14 6. Sq. ft. of space 3,850 2,150 Multiple Choice $8,815. $30,100. $12,300. $12,900. ¢1に 70に

The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. Operating costs No. of purchase orders Sq. ft. of space Multiple Choice O $6,400. $9,900. $8,100. $9,000. $25,600. Purchasing Maintenance Fabrication Assembly $32,000 $18,000 $96,000 16 3,300 $62,000 4 2,700
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