Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $28,700 Plant security 8,400 Plant nurse's salary and office expense 9,800 Factory depreciation (building) 28,000 Equipment depreciation 21,000 Machine maintenance 9,800 Plant cafeteria cost subsidy 7,000 Total $112, 700 The following additional data have been collected for the three producing departments: Selecting Cost Allocation Bases and Direct Method Allocations Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $45,100 Plant security 13,200 Plant nurse's salary and office expense 15,400 Factory depreciation (building) 44,000 Equipment depreciation 33,000 Machine maintenance 15,400 Plant cafeteria cost subsidy 11,000 $177,100 The following additional data have been collected for the three producing departments: P1 P2 P3 Number of employees 20 30 10 Space occupied (square feet) 12,000 6,000 6,000 Direct labor hours 3,400 5,000 1,600 Machine hours 1,500 600 900 Number of nurse office visits 25 20 5

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $28,700 Plant
security 8,400 Plant nurse's salary and office expense 9,800 Factory depreciation (building) 28,000 Equipment depreciation 21,000 Machine maintenance 9,800 Plant cafeteria cost subsidy 7,000 Total $112, 700 The following additional data have
been collected for the three producing departments:
Transcribed Image Text:Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $28,700 Plant security 8,400 Plant nurse's salary and office expense 9,800 Factory depreciation (building) 28,000 Equipment depreciation 21,000 Machine maintenance 9,800 Plant cafeteria cost subsidy 7,000 Total $112, 700 The following additional data have been collected for the three producing departments:
Selecting Cost Allocation Bases and Direct Method Allocations
Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred.
Plant manager's salary and office expense
$45,100
Plant security
13,200
Plant nurse's salary and office expense
15,400
Factory depreciation (building)
44,000
Equipment depreciation
33,000
Machine maintenance
15,400
Plant cafeteria cost subsidy
11,000
$177,100
The following additional data have been collected for the three producing departments:
P1
P2
P3
Number of employees
20
30
10
Space occupied (square feet)
12,000 6,000 6,000
Direct labor hours
3,400 5,000 1,600
Machine hours
1,500 600 900
Number of nurse office visits
25
20
5
Transcribed Image Text:Selecting Cost Allocation Bases and Direct Method Allocations Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $45,100 Plant security 13,200 Plant nurse's salary and office expense 15,400 Factory depreciation (building) 44,000 Equipment depreciation 33,000 Machine maintenance 15,400 Plant cafeteria cost subsidy 11,000 $177,100 The following additional data have been collected for the three producing departments: P1 P2 P3 Number of employees 20 30 10 Space occupied (square feet) 12,000 6,000 6,000 Direct labor hours 3,400 5,000 1,600 Machine hours 1,500 600 900 Number of nurse office visits 25 20 5
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