Multiple Choice$321,410$335,534$335,670$332,888< Prev2 of 10Next >Ps Dainels Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments,General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow:Service DepartmentGeneral PhysicalManagement Plant$ 33,384 $ 68,0706,000Operating DepartmentSalesAfter-Sales$ 232,830$ 292,500Departmental costsEmployee timeSpace occupied33,00028,0005,00040,00010,e005,00040,000General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis ofspace occupied. The total After-Sales Department cost after allocations is closest to:Multiple Choice$321,410$335,534< Prev2 of 10Next >ENGhp

In step down method the allocation in done in an sequence order

Dainels Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: Service Department Physical Management Plant $ 33,384 $ 68,070 Operating Department General Sales After-Sales Departmental costs $ 232,830 $ 292,500 5,e00 5,000 40,e00 40,00e 33,000 28,000 6,e00 Employee time Space occupied 10,eee General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations is closest to: Multiple Choice $321.410 $335,534

Dainels Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: Service Department Physical Management Plant $ 33,384 $ 68,070 Operating Department General Sales After-Sales Departmental costs $ 232,830 $ 292,500 5,e00 5,000 40,e00 40,00e 33,000 28,000 6,e00 Employee time Space occupied 10,eee General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations is closest to: Multiple Choice $321.410 $335,534

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs of each division, the company allocates common costs to the divisions. During the past month, the following common costs were incurred: Computer services (85% fixed) Building occupancy 347,000 674,000 Personnel costs 174,000 Total common costs $1,195,000 The following information is available concerning various activity measures and service usages by each of the divisions: Division A Division B Area occupied (square feet) 26,900 53,800 Рayroll $436,000 $236,000 Computer time (hours) Computer storage (megabytes) 280 300 4,400 -0- Equipment value Operating profit (pre-allocations) $205,000 $255,000 $767,500 $707,500 If common computer service costs are allocated using computer time as the allocation basis, what is the computer cost allocated to Division B (rounded to the nearest whole dollar)? Multiple Choice $216,625. $187,736. $180,939. $179,483.
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