The following departmental information is for the four departments at Samoa Industries. Departmental Total Cost Cost Driver Square Feet Number of Employees Janitorial $150,000 Cafeteria 50,000 Cutting 1,125,000 Assembly 1,100,000 Square footage serviced a. Cutting Department b. Assembly Department Number of employees % 200 % 20,000 4,000 16,000 40 The Janitorial and Cafeteria departments are support departments. Determine the proportional (percentage) usage of the Janitorial Department by the (a) Cutting and (b) Assembly departments using the direct method. 40 12 120
The following departmental information is for the four departments at Samoa Industries. Departmental Total Cost Cost Driver Square Feet Number of Employees Janitorial $150,000 Cafeteria 50,000 Cutting 1,125,000 Assembly 1,100,000 Square footage serviced a. Cutting Department b. Assembly Department Number of employees % 200 % 20,000 4,000 16,000 40 The Janitorial and Cafeteria departments are support departments. Determine the proportional (percentage) usage of the Janitorial Department by the (a) Cutting and (b) Assembly departments using the direct method. 40 12 120
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following departmental information is for the four departments at Samoa Industries.
Departmental Total Cost
Cost Driver
Square
Feet
Janitorial $150,000
Cafeteria 50,000
Cutting 1,125,000
Assembly 1,100,000
Square footage
serviced
a. Cutting Department
b. Assembly Department
Number of
employees
%
200
%
Number of
Employees
40
4,000
16,000
The Janitorial and Cafeteria departments are support departments. Determine the proportional (percentage) usage of the
Janitorial Department by the (a) Cutting and (b) Assembly departments using the direct method.
20,000 12
120
40
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