Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced....
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Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs.
It has the following information about its two service departments and two production departments, Cutting and Assembly:
Costs Square Feet Number of
EmployeesJanitorial Department $450,000 100 20 Cafeteria Department 200,000 10,000 10 Cutting Department 1,500,000 2,000 60 Assembly Department 3,000,000 8,000 20 The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is
a. 75%
b. 18.2%
c. 22.2%
d. 25%
Homework Answers
The correct answer is D) 25 %
Explanation
Under sequesntial methos, the cost is allocated to the following departments only. So the cost of cafeteria will be allocated to cutting and assembley department only.
So proportion of cafeteria department used by assembly department
= number of employees of assembly / (number of employees of assembly and cutting)
= 20 /(60+20)*100
= 25 %
Thus the correct answer is 25 %
Add Answer to:
Using the sequential
method, Pone Hill Company allocates Janitorial Department costs
based on square footage serviced....
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced....
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Square Feet Number of Employees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 If the Cafeteria Department incurs costs of $500,000, how much of that cost is...
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced....
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Square Feet Number of Employees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 If the Cafeteria Department incurs costs of $500,000, how much of that cost is...
Using the direct method, Pone HI Company allocates Janitorial Department costs based on square footage serviced....
Using the direct method, Pone HI Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafetaria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly Number of Square Feet Employees Janitorial Department 100 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 If the Janitorial Department incurs costs of $200,000, how much of that cost is allocated...
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