Departmental information for the four departments at Samoa Industries is provided below. Total Cost Cost Driver Square Feet Number of Employees Janitorial $150,000 Square footage serviced 200 40 Cafeteria 50,000 Number of employees 20,000 12 Cutting 1,125,000 4,000 120 Assembly 1,100,000 16,000 40 The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments. Determine the proportional (percentage) usage of the Janitorial Department by the: a. Cafeteria Department b. Cutting Department % c. Assembly Department %

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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Departmental information for the four departments at Samoa Industries is provided below.
Total Cost
Cost Driver
Square Feet Number of Employees
Janitorial $150,000
Square footage serviced
200
40
Cafeteria
50,000
Number of employees
20,000
12
Cutting
1,125,000
4,000
120
Assembly 1,100,000
16,000
40
The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating
the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments. Determine the proportional (percentage) usage of the
Janitorial Department by the:
a. Cafeteria Department
%
b. Cutting Department
%
c. Assembly Department
Transcribed Image Text:Departmental information for the four departments at Samoa Industries is provided below. Total Cost Cost Driver Square Feet Number of Employees Janitorial $150,000 Square footage serviced 200 40 Cafeteria 50,000 Number of employees 20,000 12 Cutting 1,125,000 4,000 120 Assembly 1,100,000 16,000 40 The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments. Determine the proportional (percentage) usage of the Janitorial Department by the: a. Cafeteria Department % b. Cutting Department % c. Assembly Department
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