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 Square footage serviced 200 40 Cafeteria 50,000 Number of employees 20,000 12 Cutting 1,125,000 4,000 120 Assembly 1,100,000 16,000 40 The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments. Determine the proportional (percentage) usage of the Janitorial Department by the (a) Cafeteria, (b) Cutting, and (c) Assembly departments. Department Percentage a. Cafeteria Department fill in the blank 1% b. Cutting Department fill in the blank 2% c. Assembly Department fill in the blank 3%
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 Square footage serviced 200 40 Cafeteria 50,000 Number of employees 20,000 12 Cutting 1,125,000 4,000 120 Assembly 1,100,000 16,000 40 The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments. Determine the proportional (percentage) usage of the Janitorial Department by the (a) Cafeteria, (b) Cutting, and (c) Assembly departments. Department Percentage a. Cafeteria Department fill in the blank 1% b. Cutting Department fill in the blank 2% c. Assembly Department fill in the blank 3%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 | Square footage serviced | 200 | 40 |
| Cafeteria | 50,000 | Number of employees | 20,000 | 12 |
| Cutting | 1,125,000 | 4,000 | 120 | |
| Assembly | 1,100,000 | 16,000 | 40 |
The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments. Determine the proportional (percentage) usage of the Janitorial Department by the (a) Cafeteria, (b) Cutting, and (c) Assembly departments.
| Department | Percentage |
|---|---|
| a. Cafeteria Department | fill in the blank 1% |
| b. Cutting Department | fill in the blank 2% |
| c. Assembly Department | fill in the blank 3% |
Expert Solution
Step 1: Introduction
The different methods to allocate the costs from support department to production department are Direct method, step method, and reciprocal method. Using step method, the cost is allocated in sequence form.
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