Support Department Cost Allocation--Reciprocal Servthe Africa Inc produces laptops and desktop computers. The company's production attiviles mainly occur in what the company calls its Laser and forming departments. The Cafeteria and Security departments support the company's productionactivities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $273,000. The total cost of the Cafeteria Department is $180,000. The number of emples and the squarefootage in each department are as followsSecurity DepartmentCafe DepartmentLaser DepartmentEmployees1024Square Feet3902,4004,0001,00040Forning Department50thing the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Calstera Department and to each of the production departmentsSecurity Department cost actionLaserCafeteriaDepartment DepartmentFermingDepartmentⒸ

Lets understand the basics.The cost allocation refers to the process of allocating the costs…

Sner Be ANNca Te commpotheco adivities and alocate ts based on the number of emplossi partment is $273,000. The c fetage டி பிரமாளர் Secourty Department Chetina Dipartment Late Depart Employers Square Feet 30 24 40 2,400 4,000 உ006 Caleteria Rmலை fest, respectively. The total cost of t Tormண்டு Departm Cafeteria Department is 1000 the number of emples and the s bution parts

Sner Be ANNca Te commpotheco adivities and alocate ts based on the number of emplossi partment is $273,000. The c fetage டி பிரமாளர் Secourty Department Chetina Dipartment Late Depart Employers Square Feet 30 24 40 2,400 4,000 உ006 Caleteria Rmலை fest, respectively. The total cost of t Tormண்டு Departm Cafeteria Department is 1000 the number of emples and the s bution parts

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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The following information is available for a company. How much of the factory rent should be charged to Department S? Factory rent = £15,000 Departments R S T 1,250 2,500 1,250 30 40 30 200 200 200 Bases of apportionment Floor area (square metres) Machine utilisation (%) No. of employees a) £7,500 b) £3,750 c) £5,000 d) £6,000
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The Housekeeping Department of Micanopy Hospital has direct costs of $500,000. The hospital's four patient service departments utilize the following amounts of space:Department A = 1,000 square feetDepartment B = 2,000 square feetDepartment C = 3,000 square feetDepartment D = 4,000 square feet Assuming that the cost driver for housekeeping costs is the amount of occupied space, what is the allocation of housekeeping costs to each department? Show all work. ....typing only
The following information is available for a company. How much of the factory rent should be charged to Department S? Factory rent = £15,000 Departments R S T 1,250 2,500 1,250 30 40 30 200 200 200 Bases of apportionment Floor area (square metres) Machine utilisation (%) No. of employees a) £7,500 b) £3,750 c) £5,000 d) £6,000
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