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 $50,000 $28,400 $120,000 $82,000 8 No. of Purchase 16 Orders Sq. Ft. of Space 4,500 2,500

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter7: Allocating Costs Of Support Departments And Joint Products
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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

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
$50,000 $28,400 $120,000 $82,000
8
No. of Purchase
16
Orders
Sq. Ft. of Space
4,500
2,500
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 $50,000 $28,400 $120,000 $82,000 8 No. of Purchase 16 Orders Sq. Ft. of Space 4,500 2,500
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