The Fitness Club has two operating departments- Programming & Classes and Individual fitness. There are also two service centers- Janitorial and Cafeteria. Janitorial costs are allocated based on square footage, while Cafeteria costs are allocated based on number of employees. The costs traceable to the operating and service center during 2019 were as follows: Service Centers Cafeteria Operating Departments Programming & Classes Individual Janitorial Fitness Materials 5,000 Labor МОН Total P 10,000 P 200,000 P 8,000 P 100,000 20,000 130,000 1,600 5 300,000 40,000 540,000 8,000 14 265,000 75,000 348,000 24,000 19 150,000 90,000 245,000 32,000 6 Square footage No. of Employee In addition to these costs, the Cafeteria generates revenues of P480,000. Janitorial is allocated based on square footage and Cafeteria is allocated based on the number of employees. Using the step method to allocate the service center costs, what is the total cost of Programming and Classes?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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11. 

The Fitness Club has two operating departments- Programming & Classes and Individual fitness.
There are also two service centers- Janitorial and Cafeteria. Janitorial costs are allocated based on
square footage, while Cafeteria costs are allocated based on number of employees. The costs
traceable to the operating and service center during 2019 were as follows:
Operating Departments
Individual
Service Centers
Janitorial
Cafeteria
Programming & Classes
Fitness
Materials
P 10,000
P 200,000
P
8,000
5,000
Labor
100,000
20,000
130,000
1,600
5
300,000
40,000
540,000
8,000
14
265,000
75,000
348,000
24,000
19
150,000
90,000
245,000
32,000
6
МОН
Total
Square footage
No. of Employee
In addition to these costs, the Cafeteria generates revenues of P480,000. Janitorial is allocated based
on square footage and Cafeteria is allocated based on the number of employees.
Using the step method to allocate the service center costs, what is the total cost of Programming
and Classes?
Transcribed Image Text:The Fitness Club has two operating departments- Programming & Classes and Individual fitness. There are also two service centers- Janitorial and Cafeteria. Janitorial costs are allocated based on square footage, while Cafeteria costs are allocated based on number of employees. The costs traceable to the operating and service center during 2019 were as follows: Operating Departments Individual Service Centers Janitorial Cafeteria Programming & Classes Fitness Materials P 10,000 P 200,000 P 8,000 5,000 Labor 100,000 20,000 130,000 1,600 5 300,000 40,000 540,000 8,000 14 265,000 75,000 348,000 24,000 19 150,000 90,000 245,000 32,000 6 МОН Total Square footage No. of Employee In addition to these costs, the Cafeteria generates revenues of P480,000. Janitorial is allocated based on square footage and Cafeteria is allocated based on the number of employees. Using the step method to allocate the service center costs, what is the total cost of Programming and Classes?
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