questoin 9 chapter 4 Assume a company provided the following information: Service Departments Operating Departments Cafeteria Janitorial Lab Tech Departmental costs $ 180,000 $ 140,000 $ 232,000 $ 950,000 Number of employees 10 20 40 60 Square feet of space occupied 3,000 2,000 11,000 9,000 If the company (1) uses the step-down method (beginning with the Cafeteria) to allocate service department costs to operating departments, (2) allocates Cafeteria costs based on the number of employees, and (3) allocates Janitorial costs based on square feet of space of occupied, then the cost allocated from the Cafeteria Department to the Lab Department is closest to: Multiple Choice $60,000. $54,871. $73,333.
questoin 9 chapter 4 Assume a company provided the following information: Service Departments Operating Departments Cafeteria Janitorial Lab Tech Departmental costs $ 180,000 $ 140,000 $ 232,000 $ 950,000 Number of employees 10 20 40 60 Square feet of space occupied 3,000 2,000 11,000 9,000 If the company (1) uses the step-down method (beginning with the Cafeteria) to allocate service department costs to operating departments, (2) allocates Cafeteria costs based on the number of employees, and (3) allocates Janitorial costs based on square feet of space of occupied, then the cost allocated from the Cafeteria Department to the Lab Department is closest to: Multiple Choice $60,000. $54,871. $73,333.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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questoin 9 chapter 4
Assume a company provided the following information:
| Service Departments | Operating Departments | |||||||||||||
| Cafeteria | Janitorial | Lab | Tech | |||||||||||
| Departmental costs | $ | 180,000 | $ | 140,000 | $ | 232,000 | $ | 950,000 | ||||||
| Number of employees | 10 | 20 | 40 | 60 | ||||||||||
| Square feet of space occupied | 3,000 | 2,000 | 11,000 | 9,000 | ||||||||||
If the company (1) uses the step-down method (beginning with the Cafeteria) to allocate service department costs to operating departments, (2) allocates Cafeteria costs based on the number of employees, and (3) allocates Janitorial costs based on square feet of space of occupied, then the cost allocated from the Cafeteria Department to the Lab Department is closest to:
Multiple Choice
-
$60,000.
-
$54,871.
-
$73,333.
-
$113,333.
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