Soham Manufacturing has two operating departments: Blending and Shaping. Blending has 260 employees and occupies 24,000 ft². Shaping has 100 employees and occupies 20,000 ft². Indirect factory costs for the current month are: • . Administrative costs: $920,000 Maintenance costs: $210,000 Administrative costs are allocated to operating departments based on the number of workers. Determine the administrative costs allocated to each operating department.

Soham Manufacturing has two operating departments: Blending and Shaping. Blending has 260 employees and occupies 24,000 ft². Shaping has 100 employees and occupies 20,000 ft². Indirect factory costs for the current month are: • . Administrative costs: $920,000 Maintenance costs: $210,000 Administrative costs are allocated to operating departments based on the number of workers. Determine the administrative costs allocated to each operating department.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

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

Section: Chapter Questions

Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...

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