Question

Spaghetti is a family-owned restaurant in KSA.  The corporate office provides 2 kinds of services (maintenance and personnel) to 3 locations (Riyadh, Jeddah and Dammam).  

In a recent accounting period, the cost for maintenance was $25,000 and for personnel was $15,000.  Maintenance costs are allocated on the basis of square feet, and personnel costs are allocated based on the basis of number of employees.

                                                                        Number of

                                             Square Feet         Employees

Support Departments:

Maintenance                        1,000                    15

Personnel                             1,000                      8

Operating Departments:

Riadh                                   5,000                    12

Jeddah                                  6,000                    18

Dammam                             3,000                    10

If the restaurant uses the direct method and the costs of Riadh location, Jeddah location and Dammam location are $15,000, $12,000 and $10,000 respectively, calculate the total costs allocated to each restaurant location.

Answer 1

Cokutim Given dat Sauare feet Alumber af enployees Suppost depastneuts e Naintunense personne epexating depadmets Rach SO0D Jeddah mmam locaton a Cors allocuted t ealh gestaurant Riadb Jeddah pammem Drect Cas 15000 2000 $35J Mashtanance Costalloafíon G1S0 per semel est alhcation 3ం0 3750 Total Cosh 2१५6५ 28429