Parker Manufacturing has two production departments: Assembly and Packaging. Assembly has 150 employees and occupies 15,000 ft2. Packaging has 50 employees and occupies 10,000 ft2. Monthly indirect costs are: supervision costs of $400,000 and utilities of $75,000. Supervision costs are allocated based on number of employees. Calculate the supervision costs allocated to each department.

Cornerstones of Cost Management (Cornerstones Series)
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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
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Parker manufacturing has two production solve this accounting questions

Parker Manufacturing has two production departments: Assembly and
Packaging. Assembly has 150 employees and occupies 15,000 ft2.
Packaging has 50 employees and occupies 10,000 ft2. Monthly indirect
costs are: supervision costs of $400,000 and utilities of $75,000.
Supervision costs are allocated based on number of employees.
Calculate the supervision costs allocated to each department.
Transcribed Image Text:Parker Manufacturing has two production departments: Assembly and Packaging. Assembly has 150 employees and occupies 15,000 ft2. Packaging has 50 employees and occupies 10,000 ft2. Monthly indirect costs are: supervision costs of $400,000 and utilities of $75,000. Supervision costs are allocated based on number of employees. Calculate the supervision costs allocated to each department.
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