Using the step method to allocate the service center costs, what is the total cost of programming and classes? The Fitness Club has two operating departments- Programming & Classes and Individual fitness.There are also two service centers- Janitorial and Cafeteria. Janitorial costs are allocated based onsquare footage, while Cafeteria costs are allocated based on number of employees. The coststraceable to the operating and service center during 2019 were as follows:Operating DepartmentsIndividualService CentersJanitorialCafeteriaProgramming & ClassesFitnessMaterialsP 10,000P 200,000P8,0005,000Labor100,00020,000130,0001,6005300,00040,000540,0008,00014265,00075,000348,00024,00019150,00090,000245,00032,0006МОНTotalSquare footageNo. of EmployeeIn addition to these costs, the Cafeteria generates revenues of P480,000. Janitorial is allocated basedon square footage and Cafeteria is allocated based on the number of employees.Using the step method to allocate the service center costs, what is the total cost of Programmingand Classes?

Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

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Accounting

Using the step method to allocate the service center costs, what is the total cost of programming and classes?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Using the step method to allocate the service center costs, what is the total cost of programming and classes?

The Fitness Club has two operating departments- Programming & Classes and Individual fitness.
There are also two service centers- Janitorial and Cafeteria. Janitorial costs are allocated based on
square footage, while Cafeteria costs are allocated based on number of employees. The costs
traceable to the operating and service center during 2019 were as follows:
Operating Departments
Individual
Service Centers
Janitorial
Cafeteria
Programming & Classes
Fitness
Materials
P 10,000
P 200,000
P
8,000
5,000
Labor
100,000
20,000
130,000
1,600
5
300,000
40,000
540,000
8,000
14
265,000
75,000
348,000
24,000
19
150,000
90,000
245,000
32,000
6
МОН
Total
Square footage
No. of Employee
In addition to these costs, the Cafeteria generates revenues of P480,000. Janitorial is allocated based
on square footage and Cafeteria is allocated based on the number of employees.
Using the step method to allocate the service center costs, what is the total cost of Programming
and Classes?

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