The following is a partially completed departmental expense allocation schedule for Sonic Co. It reports the total amounts of direct and indirect expenses for its four departments. The HR department expenses are allocated to the operating departments based on number of employees, and the IT department expenses are allocated based on computer usage hours. Compute the amount of IT department expense to be allocated to the Manufacturing department. (Do not round your intermediate calculations.) Given Information: ⚫ HR department operating cost = $40,000 • IT department operating cost = $36,000 • Manufacturing department computer usage = 2,400 hours Packaging department computer usage = 1,600 hours a. $18,000 b. $21,600 c. $14,400 d. $24,000 e. $20,000
The following is a partially completed departmental expense allocation schedule for Sonic Co. It reports the total amounts of direct and indirect expenses for its four departments. The HR department expenses are allocated to the operating departments based on number of employees, and the IT department expenses are allocated based on computer usage hours. Compute the amount of IT department expense to be allocated to the Manufacturing department. (Do not round your intermediate calculations.) Given Information: ⚫ HR department operating cost = $40,000 • IT department operating cost = $36,000 • Manufacturing department computer usage = 2,400 hours Packaging department computer usage = 1,600 hours a. $18,000 b. $21,600 c. $14,400 d. $24,000 e. $20,000
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter25: Departmental Accounting
Section: Chapter Questions
Problem 5SEB
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Transcribed Image Text:The following is a partially completed departmental expense allocation
schedule for Sonic Co. It reports the total amounts of direct and indirect
expenses for its four departments. The HR department expenses are
allocated to the operating departments based on number of employees,
and the IT department expenses are allocated based on computer usage
hours.
Compute the amount of IT department expense to be allocated to the
Manufacturing department. (Do not round your intermediate calculations.)
Given Information:
⚫ HR department operating cost = $40,000
•
IT department operating cost = $36,000
•
Manufacturing department computer usage = 2,400 hours
Packaging department computer usage = 1,600 hours
a. $18,000
b. $21,600
c. $14,400
d. $24,000
e. $20,000
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