Service department costs are allocated to operating

Reference no: EM13585946

1.Spacer Company has two service departments and two operating departments.Budgeted costs and budgeted activity in the various departments for last year are shown below:

Custodial Cutting Assembly
Services Cafeteria Department Department
Departmental costs $50,400 $28,000 $120,000 $200,000
Square feet occupied 500 1,000 4,000 5,000
Number of employees 10 15 75 100
Machine-hours 10,000 15,000

Service department costs are allocated to operating departments with the costs of Custodial Services allocated on the basis of square feet of space occupied and the costs of the Cafeteria on the basis of number of employees. The departmental costs for the cutting and assembly departments are overhead costs. Predetermined overhead rates in the Cutting and Assembly departments are based on machine-hours.

1. Assume that the company uses the direct method of allocation. The predetermined overhead rate in the Assembly Department would be closest to:

A) $16.27

B) $15.00

C) $15.87

D) $16.00

2. Assume that the company uses the step method of allocation with Custodial Services allocated first. The amount of Custodial Services cost allocated to the Assembly Department would be:

A) $0

B) $28,000

C) $24,000

D) $25,200

Reference no: EM13585946

Questions Cloud

A client operates a small business organized as a sole : a client operates a small business organized as a sole propreintship and is considering change the business to operate

Describe a scenario where you believe a binomial : describe a scenario where you believe a binomial distribution would be appropriate. describe a scenario where you

Enough of a monoprotic acid is dissolved in water to : enough of a monoprotic acid is dissolved in water to produce a 0.0170 m solution. the ph of the resulting solution is

A river is rising at a rate of 3 inches per hour if the : a river is rising at a rate of 3 inches per hour. if the river rises more than 2 feetit will exeecd flood stage. how

Service department costs are allocated to operating : 1.spacer company has two service departments and two operating departments.budgeted costs and budgeted activity in the

Daw the structures of methyl salicylate and say what : draw the structures of methyl salicylate and say what evidence indicates that methyl salicylate was formed. draw the

In excel use the regression tool to analyze the data in a : the bekaert company of belgium is a major supplier of bead wire for tire re-enforcement and other specialized wire

Calculate the time it takes the sled to travel 21 m down : an empty sled of mass 25 kg slides down a muddy hill with a constant speed of 2.4 ms.the slope of the hill is inclined

Write the equation for the synthesis of this ester from : the fragrance of apricots is due to the ester pentyl butanoate. write the equation for the synthesis of this ester

User Account

All Pages