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The following dashboard shows year-end Information for a company's mobile devices department. Rent, which is an indirect expense, and Office, which is a service department expense, have been allocated to the mobile services department. Other expenses are direct expenses. Office $32,400 Rent $29,200 Depreciation $34,300 Salaries Sales Cost of goods sold $60,000 $284,500 $132,400 Mc Grow Hill gh Enter answers in the tabs below. Required 1 Required 2 Requ d3 W Using the reports from requirements 1 and 2, should the mobile devices department be eliminated? Should the mobile devices department be eliminated? < Required 2 < Prev 6 of 9 Next A company has two operating departments (Appliances and Electronics) and one service department (Office). The Office department reports direct expenses of $35,000. The company also has $5,400 of utilities expense, which is an Indirect expense to all departments. Additional Information on square feet occupled and sales follows. Department Office Appliances Electronics Square Feet 2,880 5,160 3,960 Sales $ 209,440 98,560 1. Allocate utilities expense to the three departments based on square feet occupied. 2. Allocate Office expense to the Appliances and Electronics departments based on sales. Utilities Department Office Allocation Base Numerator Percent of Allocation Base Denominator Cost to be Allocated Allocated Cost % of Total Appliances Electronics Totals Office expense Allocation Base Percent of Allocation Base Cost to be Allocated Cost Allocated Department Numerator Denominator % of Total Appliances Blectronics Totals

The following dashboard shows year-end Information for a company's mobile devices department. Rent, which is an indirect expense, and Office, which is a service department expense, have been allocated to the mobile services department. Other expenses are direct expenses. Office $32,400 Rent $29,200 Depreciation $34,300 Salaries Sales Cost of goods sold $60,000 $284,500 $132,400 Mc Grow Hill gh Enter answers in the tabs below. Required 1 Required 2 Requ d3 W Using the reports from requirements 1 and 2, should the mobile devices department be eliminated? Should the mobile devices department be eliminated? < Required 2 < Prev 6 of 9 Next A company has two operating departments (Appliances and Electronics) and one service department (Office). The Office department reports direct expenses of $35,000. The company also has $5,400 of utilities expense, which is an Indirect expense to all departments. Additional Information on square feet occupled and sales follows. Department Office Appliances Electronics Square Feet 2,880 5,160 3,960 Sales $ 209,440 98,560 1. Allocate utilities expense to the three departments based on square feet occupied. 2. Allocate Office expense to the Appliances and Electronics departments based on sales. Utilities Department Office Allocation Base Numerator Percent of Allocation Base Denominator Cost to be Allocated Allocated Cost % of Total Appliances Electronics Totals Office expense Allocation Base Percent of Allocation Base Cost to be Allocated Cost Allocated Department Numerator Denominator % of Total Appliances Blectronics Totals

Cornerstones of Cost Management (Cornerstones Series)
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 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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The following dashboard shows year-end Information for a company's mobile devices department. Rent, which is an indirect expense, and Office, which is a service department expense, have been allocated to the mobile services department. Other expenses are direct expenses. Office $32,400 Rent $29,200 Depreciation $34,300 Salaries Sales Cost of goods sold $60,000 $284,500 $132,400 Mc Grow Hill gh Enter answers in the tabs below. Required 1 Required 2 Requ d3 W Using the reports from requirements 1 and 2, should the mobile devices department be eliminated? Should the mobile devices department be eliminated? < Required 2 < Prev 6 of 9 Next
Transcribed Image Text:The following dashboard shows year-end Information for a company's mobile devices department. Rent, which is an indirect expense, and Office, which is a service department expense, have been allocated to the mobile services department. Other expenses are direct expenses. Office $32,400 Rent $29,200 Depreciation $34,300 Salaries Sales Cost of goods sold $60,000 $284,500 $132,400 Mc Grow Hill gh Enter answers in the tabs below. Required 1 Required 2 Requ d3 W Using the reports from requirements 1 and 2, should the mobile devices department be eliminated? Should the mobile devices department be eliminated? < Required 2 < Prev 6 of 9 Next
A company has two operating departments (Appliances and Electronics) and one service department (Office). The Office department reports direct expenses of $35,000. The company also has $5,400 of utilities expense, which is an Indirect expense to all departments. Additional Information on square feet occupled and sales follows. Department Office Appliances Electronics Square Feet 2,880 5,160 3,960 Sales $ 209,440 98,560 1. Allocate utilities expense to the three departments based on square feet occupied. 2. Allocate Office expense to the Appliances and Electronics departments based on sales. Utilities Department Office Allocation Base Numerator Percent of Allocation Base Denominator Cost to be Allocated Allocated Cost % of Total Appliances Electronics Totals Office expense Allocation Base Percent of Allocation Base Cost to be Allocated Cost Allocated Department Numerator Denominator % of Total Appliances Blectronics Totals
Transcribed Image Text:A company has two operating departments (Appliances and Electronics) and one service department (Office). The Office department reports direct expenses of $35,000. The company also has $5,400 of utilities expense, which is an Indirect expense to all departments. Additional Information on square feet occupled and sales follows. Department Office Appliances Electronics Square Feet 2,880 5,160 3,960 Sales $ 209,440 98,560 1. Allocate utilities expense to the three departments based on square feet occupied. 2. Allocate Office expense to the Appliances and Electronics departments based on sales. Utilities Department Office Allocation Base Numerator Percent of Allocation Base Denominator Cost to be Allocated Allocated Cost % of Total Appliances Electronics Totals Office expense Allocation Base Percent of Allocation Base Cost to be Allocated Cost Allocated Department Numerator Denominator % of Total Appliances Blectronics Totals
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