Flamingos, Inc. has two service departments and two operating (production) departments. Administrative Department costs are allocated to the Assembly and Packaging departments based on the number of employees, and Maintenance Department costs are allocated to the Assembly and Packaging departments based on square feet occupied. Data for these departments follows: Department Direct Expenses No. of Employees Square Feet Administrative $ 30,000 Maintenance 15,000 Assembly 70,000 6 2,000 Packaging 45,000 4 3,000 The total amount of service department costs (Administrative and Maintenance) that would be allocated to the Packaging Department is:
Flamingos, Inc. has two service departments and two operating (production) departments. Administrative Department costs are allocated to the Assembly and Packaging departments based on the number of employees, and Maintenance Department costs are allocated to the Assembly and Packaging departments based on square feet occupied. Data for these departments follows: Department Direct Expenses No. of Employees Square Feet Administrative $ 30,000 Maintenance 15,000 Assembly 70,000 6 2,000 Packaging 45,000 4 3,000 The total amount of service department costs (Administrative and Maintenance) that would be allocated to the Packaging Department is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Flamingos, Inc. has two service departments and two operating (production) departments. Administrative Department costs are allocated to the Assembly and Packaging departments based on the number of employees, and Maintenance Department costs are allocated to the Assembly and Packaging departments based on square feet occupied. Data for these departments follows:
| Department | Direct Expenses | No. of Employees | Square Feet | ||||||
| Administrative | $ | 30,000 | |||||||
| Maintenance | 15,000 | ||||||||
| Assembly | 70,000 | 6 | 2,000 | ||||||
| Packaging | 45,000 | 4 | 3,000 | ||||||
The total amount of service department costs (Administrative and Maintenance) that would be allocated to the Packaging Department is:
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