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Overhead Cost Area Admin and General Info and Telecomm Sales and Marketing Utilities Prop Maint Total HA260 Wilson-Sommers 3. Using the Single Allocation Base Approach (SABA) allocate the following overhead costs across the rooms department, the food department, and the beverages department. Use the table below as a guide and round all calculations to the nearest whole value (percent or dollars) HINT: Use slide 30 in the lecture as a guide The single allocation base will be square footage. • The total overhead costs for undistributed operating expenses are as follows: o Admin and General $15,250 o Information and telecommunications systems $5,700 o o Utilities $9,750 Sales and Marketing $12,000 Overhead Costs o Property Maintenance $4,300 • The total square footage is 60,000 square feet, each department has the following square footage o Rooms Department- 30,000 square feet o Food Department -18,000 square feet o Beverage Department- 12,000 square feet Percentage of Square Footage Rooms Food Beverage Rooms Amount of Allocation Food Beverage

Overhead Cost Area Admin and General Info and Telecomm Sales and Marketing Utilities Prop Maint Total HA260 Wilson-Sommers 3. Using the Single Allocation Base Approach (SABA) allocate the following overhead costs across the rooms department, the food department, and the beverages department. Use the table below as a guide and round all calculations to the nearest whole value (percent or dollars) HINT: Use slide 30 in the lecture as a guide The single allocation base will be square footage. • The total overhead costs for undistributed operating expenses are as follows: o Admin and General $15,250 o Information and telecommunications systems $5,700 o o Utilities $9,750 Sales and Marketing $12,000 Overhead Costs o Property Maintenance $4,300 • The total square footage is 60,000 square feet, each department has the following square footage o Rooms Department- 30,000 square feet o Food Department -18,000 square feet o Beverage Department- 12,000 square feet Percentage of Square Footage Rooms Food Beverage Rooms Amount of Allocation Food Beverage

FINANCIAL ACCOUNTING
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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Provide the Ans of Question no-3 only.

Chapter 6 Homework 1. Determine the type of costs described below a. Costs that can be traced directly to the cost object b. Costs which change in proportion to changes in volume c. The cost of the next best thing d. Costs which do not change in proportion to changes in volume e. Costs which management can influence in the short term in some capacity f. Costs which are different between multiple alternative choices HA260 Wilson-Sommers g. Costs which are the result of a past decision and cannot be changed 2. Determine if each of the following is a direct or indirect cost for a hotel food department. Then determine if it is a fixed or variable cost as well. a. Utilities for the building- b. Depreciation on kitchen appliances- c. Wages for kitchen staff preparing meals- d. Property taxes for the hotel- e. Cost of food inventory - Overhead Cost Area Admin and General Info and Telecomm Sales and Marketing Utilities Prop Maint Total 3. Using the Single Allocation Base Approach (SABA) allocate the following overhead costs across the rooms department, the food department, and the beverages department. Use the table below as a guide and round all calculations to the nearest whole value (percent or dollars) HINT: Use slide 30 in the lecture as a guide The single allocation base will be square footage. The total overhead costs for undistributed operating expenses are as follows: o Admin and General $15,250 ● o Information and telecommunications systems $5,700 o Sales and Marketing $12,000 o Utilities $9,750 o Property Maintenance $4,300 The total square footage is 60,000 square feet, each department has the following square footage Overhead Costs O Rooms Department- 30,000 square feet o Food Department -18,000 square feet o Beverage Department- 12,000 square feet Percentage of Square Footage Rooms HA260 Wilson-Sommers Food Beverage Rooms Amount of Allocation Food Beverage
Transcribed Image Text:Chapter 6 Homework 1. Determine the type of costs described below a. Costs that can be traced directly to the cost object b. Costs which change in proportion to changes in volume c. The cost of the next best thing d. Costs which do not change in proportion to changes in volume e. Costs which management can influence in the short term in some capacity f. Costs which are different between multiple alternative choices HA260 Wilson-Sommers g. Costs which are the result of a past decision and cannot be changed 2. Determine if each of the following is a direct or indirect cost for a hotel food department. Then determine if it is a fixed or variable cost as well. a. Utilities for the building- b. Depreciation on kitchen appliances- c. Wages for kitchen staff preparing meals- d. Property taxes for the hotel- e. Cost of food inventory - Overhead Cost Area Admin and General Info and Telecomm Sales and Marketing Utilities Prop Maint Total 3. Using the Single Allocation Base Approach (SABA) allocate the following overhead costs across the rooms department, the food department, and the beverages department. Use the table below as a guide and round all calculations to the nearest whole value (percent or dollars) HINT: Use slide 30 in the lecture as a guide The single allocation base will be square footage. The total overhead costs for undistributed operating expenses are as follows: o Admin and General $15,250 ● o Information and telecommunications systems $5,700 o Sales and Marketing $12,000 o Utilities $9,750 o Property Maintenance $4,300 The total square footage is 60,000 square feet, each department has the following square footage Overhead Costs O Rooms Department- 30,000 square feet o Food Department -18,000 square feet o Beverage Department- 12,000 square feet Percentage of Square Footage Rooms HA260 Wilson-Sommers Food Beverage Rooms Amount of Allocation Food Beverage
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