Metro Corp allocates its IT department costs of $245,000 to its manufacturing and distribution departments using the direct method, based on number of employees. Information about departments: Department Employees IT 6 Manufacturing 45 Distribution 15 Required: Calculate how much of the IT department costs will be allocated to manufacturing.

Metro Corp allocates its IT department costs of $245,000 to its manufacturing and distribution departments using the direct method, based on number of employees. Information about departments: Department Employees IT 6 Manufacturing 45 Distribution 15 Required: Calculate how much of the IT department costs will be allocated to manufacturing.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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Sasha Company allocates the estimated $192,400 of its accounting department costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and employees follows: Department Employees Accounting 4 Production 37 Sales 16 How much of the accounting department costs will be allocated to the production?
Flamingos, Incorporated 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 Number Employees Square Feet Administrative $42,000 Maintenance 27,000 Assembly 82,000 Packaging 57,000 4 The total amount of service department costs (Administrative and Maintenance) that would be allocated to the Packaging Department is: O $33,000. $48,600. $33,600. $16,800. $16,200. 6 1,600 2,400
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