The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. (Do not round your intermediate calculations.) Purchasing Maintenance Fabrication Assembly Operating costs $51,000 $29,400 $115,000 $81,000 No. of purchase orders 15 5 Sq.ft. of space 4,250 1,750 a. $38,250. b. $12,750. c. $8,575. d. $20,825. e. $14,700.
The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. (Do not round your intermediate calculations.) Purchasing Maintenance Fabrication Assembly Operating costs $51,000 $29,400 $115,000 $81,000 No. of purchase orders 15 5 Sq.ft. of space 4,250 1,750 a. $38,250. b. $12,750. c. $8,575. d. $20,825. e. $14,700.
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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
Transcribed Image Text:The following is a partially completed departmental expense allocation
spreadsheet for Brickland. It reports the total amounts of direct and indirect
expenses for its four departments. Purchasing department expenses are
allocated to the operating departments on the basis of purchase orders.
Maintenance department expenses are allocated based on square footage.
Compute the amount of Maintenance department expense to be allocated to
Fabrication. (Do not round your intermediate calculations.)
Purchasing Maintenance Fabrication Assembly
Operating costs
$51,000 $29,400
$115,000
$81,000
No. of purchase orders
15
5
Sq.ft. of space
4,250
1,750
a. $38,250.
b. $12,750.
c. $8,575.
d. $20,825.
e. $14,700.
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