E7-10 Departmental Distribution of Actual Overhead-Step Method. The Thompson Mining Corporation has producing departments A and B. and service departments C, D; E, and F. Costs are distributed from F first, D second, C third, and E fourth. It is the company's policy that once a service department's costs have been distributed, no costs from other service departments are to be distributed to it. F distributes one half of its cost to A and the remainder to D and E on the basis of the number of employees. D distributes its costs on the basis of investment in equipment, C's are assigned to B, and E's are distributed on the basis of floor space. The following information pertains to the month just ended: Square Feet 2,000 3,000 4,000 2,000 1,500 _2,500 15,000 Investment in Equipment $170,000 80,000 130,000 70,000 , 50,000 30,000 K $530,000 Employees Department A. в. c. D. E, F. Cost $15,000 12,000 12,000 8,000 2,000 2.000 $51,000 40 20 20 30 20 10 140 ....... Total Required: Distribute service department overhead.
E7-10 Departmental Distribution of Actual Overhead-Step Method. The Thompson Mining Corporation has producing departments A and B. and service departments C, D; E, and F. Costs are distributed from F first, D second, C third, and E fourth. It is the company's policy that once a service department's costs have been distributed, no costs from other service departments are to be distributed to it. F distributes one half of its cost to A and the remainder to D and E on the basis of the number of employees. D distributes its costs on the basis of investment in equipment, C's are assigned to B, and E's are distributed on the basis of floor space. The following information pertains to the month just ended: Square Feet 2,000 3,000 4,000 2,000 1,500 _2,500 15,000 Investment in Equipment $170,000 80,000 130,000 70,000 , 50,000 30,000 K $530,000 Employees Department A. в. c. D. E, F. Cost $15,000 12,000 12,000 8,000 2,000 2.000 $51,000 40 20 20 30 20 10 140 ....... Total Required: Distribute service department overhead.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:E7-10 Departmental Distribution of Actual Overhead-Step Method. The
Thompson Mining Corporation has producing departments A and B.
and service departments C, D; E, and F. Costs are distributed from F
first, D second, C third, and E fourth. It is the company's policy that
once a service department's costs have been distributed, no costs from
other service departments are to be distributed to it. F distributes one
half of its cost to A and the remainder to D and E on the basis of the
number of employees. D distributes its costs on the basis of investment in
equipment, C's are assigned to B, and E's are distributed on the basis of
floor space. The following information pertains to the month just ended:
Investment in
Square
Feet
Equipment
Employees
40
20
20
30
20
10
Department
Cost
$15,000
12,000
12,000
8,000
2,000
2,000
$51,000
2,000
3,000
4,000
2,000
1,500
2,500
15,000
$170,000
80,000
130,000
70,000 A
50,000
30,000 K
$530,000
A
c.
D.
E,
F.
*********
140
Total
Required: Distribute service department overhead.
Ceanne
eapner
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