Roladyne has 2 production areas-mixing and finishing, for which the corporate office provides two kinds of support services, accounting and facilities. Accounting costs are allocated on the basis of number of employees and facility costs are allocated based on the basis of number of square feet. Accounting Facilities Mixing Finishing Direct costs $56,000 $34,000 $116,000 $105,000 # of Employees 5 35 20 # of Square Feet 2,000 5,000 7,000 The complete reciprocated cost is $61,590 for accounting and $39,133 for facilities. Using the reciprocal method, how much cost will be allocated to the accounting department from the facilities department? Do not round interim calculations. $5,590 $5,133 ○ $8,799 O $3,261
Roladyne has 2 production areas-mixing and finishing, for which the corporate office provides two kinds of support services, accounting and facilities. Accounting costs are allocated on the basis of number of employees and facility costs are allocated based on the basis of number of square feet. Accounting Facilities Mixing Finishing Direct costs $56,000 $34,000 $116,000 $105,000 # of Employees 5 35 20 # of Square Feet 2,000 5,000 7,000 The complete reciprocated cost is $61,590 for accounting and $39,133 for facilities. Using the reciprocal method, how much cost will be allocated to the accounting department from the facilities department? Do not round interim calculations. $5,590 $5,133 ○ $8,799 O $3,261
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 1CMA
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Transcribed Image Text:Roladyne has 2 production areas-mixing and finishing, for which the corporate office provides two kinds of support services,
accounting and facilities. Accounting costs are allocated on the basis of number of employees and facility costs are allocated based on
the basis of number of square feet.
Accounting Facilities
Mixing
Finishing
Direct costs
$56,000
$34,000
$116,000
$105,000
# of Employees
5
35
20
# of Square Feet
2,000
5,000
7,000
The complete reciprocated cost is $61,590 for accounting and $39,133 for facilities. Using the reciprocal method, how much cost will
be allocated to the accounting department from the facilities department? Do not round interim calculations.
$5,590
$5,133
○ $8,799
O $3,261
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