Cisco Industries is preparing a departmental expense allocation spreadsheet. The table below shows the total direct and indirect expenses for four departments. The Purchasing department expenses are allocated to the operating departments based on purchase orders, while the Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Assembly. (Do not round intermediate calculations.) Department Operating Costs Purchasing Maintenance Fabrication Assembly $28,400 $120,000 $82,000 $50,000 8 No. of Purchase 16 Orders Sq. Ft. of Space 4,500 2,500
Cisco Industries is preparing a departmental expense allocation spreadsheet. The table below shows the total direct and indirect expenses for four departments. The Purchasing department expenses are allocated to the operating departments based on purchase orders, while the Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Assembly. (Do not round intermediate calculations.) Department Operating Costs Purchasing Maintenance Fabrication Assembly $28,400 $120,000 $82,000 $50,000 8 No. of Purchase 16 Orders Sq. Ft. of Space 4,500 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 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Compute the amount of maintenance department expense

Transcribed Image Text:Cisco Industries is preparing a departmental expense allocation
spreadsheet. The table below shows the total direct and indirect
expenses for four departments. The Purchasing department expenses are
allocated to the operating departments based on purchase orders, while
the Maintenance department expenses are allocated based on square
footage.
Compute the amount of Maintenance department expense to be allocated
to Assembly. (Do not round intermediate calculations.)
Department
Operating Costs
Purchasing Maintenance Fabrication Assembly
$28,400 $120,000 $82,000
$50,000
8
No. of Purchase
16
Orders
Sq. Ft. of Space
4,500
2,500
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