Question

Direct Square Feet of Manufacturing Number of Floor Space Manufacturing Number of Department Labor-Hours Employees Occupied...

Direct Square Feet of
Manufacturing Number of Floor Space Manufacturing Number of
Department Labor-Hours Employees Occupied Labor-Hours Requisitions
Building and grounds 0 0 0 0 0
Personnel* 0 0 8,400 0 0
General plant administration 0 42 12,600 0 0
Cafeteria: operating loss 0 14 5,600 1,000 0
Storeroom 0 28 39,200 2,000 0
Machining 6,000 70 56,000 6,000 6,000
Assembly 6,000 126 128,200 6,600 2,000
Total 12,000 280 250,000 15,600 8,000
*Basis used is number of employees
Support departments:
Building and grounds $35,000
Personnel 1,064
General plant administration 21,300
Cafeteria: Operating loss 3,204
Storeroom 3,388 $63,956
Operating departments:
Machining $33,000
Assembly 48,900 81,900
Total for support and operating departments $145,856

Using the​ step-down method, allocate​ support-department costs. Allocate the costs of the support departments in the order given in this problem. ​(Round all indirect allocation rates to the nearest cent and all other computations to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating​ costs.)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Buildings and grounds

personnel

General plant administration

Cafeteria: Operating loss

Storeroom

Machining

Assembly

Step-down method

35000

1064

21300

3204

3388

33000

48900

1. buildings and ground (35000/250000) = 0. 14/square feet

(35000)

1176 (8400*0.14)

1764 (12600*0.14)

784 (5600*0.14)

5488 (39200*0.14)

7840 (56000*0.0.14)

17948 (128200*0.14)

2. personnel (2240/280) = 8/employee

(2240)

336 (42*8)

112 (14*8)

224 (28*8)

560 (70*8)

1008 (126*8)

3. General plant administration (23400/15600) = 1.50/MLH

(23400)

1500 (1000*1.50)

3000 (2000*1.50)

9000 (6000*1.5)

9900 (6600*1.5)

4. Cafeteria: Operating loss (5600/124) = 25 /employee

(5600)

700 (28*25)

1750 (70*25)

3150 (126*25)

5. Storeroom (12800/8000)= 1.6/requisition

(12800)

9600 (6000*1.6)

3200 (2000*1.6)

Cost allocated to operating departments

$61750

$84106

Add a comment
Know the answer?
Add Answer to:
Direct Square Feet of Manufacturing Number of Floor Space Manufacturing Number of Department Labor-Hours Employees Occupied...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Direct Square Feet of Manufacturing Number of Floor Space Manufacturing Number of Department Labor-Hours Employees Occupied...

    Direct Square Feet of Manufacturing Number of Floor Space Manufacturing Number of Department Labor-Hours Employees Occupied Labor-Hours Requisitions Building and grounds 0 0 0 0 0 Personnel* 0 0 8,400 0 0 General plant administration 0 42 12,600 0 0 Cafeteria: operating loss 0 14 5,600 1,000 0 Storeroom 0 28 39,200 2,000 0 Machining 6,000 70 56,000 6,000 6,000 Assembly 6,000 126 128,200 6,600 2,000 Total 12,000 280 250,000 15,600 8,000 *Basis used is number of employees Support departments:...

  • Requirement 2. Using the direct method, rework requirement 1. Using the direct method, allocate support-department costs....

    Requirement 2. Using the direct method, rework requirement 1. Using the direct method, allocate support-department costs. (Round cost allocations to the nearest whole dollar. Use parentheses Operating Departments Support Departments General Cafeteria Plant Operating Bldg and Grounds Personnel Admin. Loss Storeroom Machining Assembly Costs incurred Allocation of costs: Building and grounds Personnel General plant administration Cafeteria Storeroomm Total budgeted costs of operating departments Enter any number in the edit fields and then click Check Answer. ㄧㄨ Data Table Support departments:...

  • Requirement 2. Using the direct method, rework requirement 1 Using the direct method, allocate support-department costs....

    Requirement 2. Using the direct method, rework requirement 1 Using the direct method, allocate support-department costs. (Round cost allocations to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.) Operating Departments Support Departments General Cafeteria Plant Operating Bldg and Storeroom Machining Grounds Personnel Admin. Loss Assembly Costs incurred Allocation of costs: Building and grounds Personnel General plant administration Cafeteria Storeroom Total budgeted costs of operating departments Enter any number in the edit fields...

  • The Heightened Hill Company has prepared department overhead budgets for​ budgeted-volume levels before allocations as​ follows:...

    The Heightened Hill Company has prepared department overhead budgets for​ budgeted-volume levels before allocations as​ follows: Support departments: Building and grounds $21,000 Personnel 1,520 General plant administration 36,960 Cafeteria: Operating loss 105 Storeroom 2,975 $62,560 Operating departments: Machining $34,000 Assembly 49,000 83,000 Total for support and operating departments $145,560 Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after​ support-department costs are allocated to operating departments. Bases for...

  • The Southern Wind Company has prepared department overhead budgets for budgeted-volume levels bef...

    The Southern Wind Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: 囲click the icon to view the department overhead budgets.) Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following: 囲(Click the icon to view the data.) Read the requirements Support departments: $30,000 1,350 77,136 1,049...

  • The Southern Wind Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows:...

    The Southern Wind Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: (Click the icon to view the department overhead budgets.) Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following: Click the icon to view the data.) Read the requirements Operating Departments Support Departments General Cafeteria...

  • The Eastern Summit Company has prepared department overhead budgets for​ budgeted-volume levels before allocations as​ follows:...

    The Eastern Summit Company has prepared department overhead budgets for​ budgeted-volume levels before allocations as​ follows: Support departments: Building and grounds $45,000 Personnel 7,800 General plant administration 36,120 Cafeteria: Operating loss 20,670 Storeroom 18,300 $127,890 Operating departments: Machining $36,000 Assembly 60,000 96,000 Total for support and operating departments $223,890 Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after​ support-department costs are allocated to operating departments. Bases for...

  • Company has prepared department overhead budgets for budgeted-volume levels before allocations as...

    Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following: Support departments: Building and grounds $56,000 Personnel 1,140 General plant administration 14,040 Cafeteria: Operating loss 300 Storeroom 6,244 $77,724 Operating departments: Machining $34,000 Assembly 49,000 83,000 Total for...

  • The Norther Plain Company has prepared department overhead budgets for budgeted volume levels before alocations as...

    The Norther Plain Company has prepared department overhead budgets for budgeted volume levels before alocations as follows (Click the icon to view the department overhead budgets.) Management has decided that the most approprierwentory costs are achieved by using individual department overhead rates. These rates are developed after wapport department costs are allocated to operating departments Bases for allocation are to be selected from the following: Click the icon to view the data) i Data Table $ 22,500 2,394 Support departments:...

  • solve using step down method problem 15-30. Costs Support departments Buildings and grounds Personnel General plant...

    solve using step down method problem 15-30. Costs Support departments Buildings and grounds Personnel General plant administration Cafeteria: operating costs Storeroom Operating departments Machining Assembly 45000 7800 36120 20670 18300 127890 Immo-NM 36000 60000 96000 Total 223890 DLH Building and grounds Pesonnel General plant administration Cafeteria: operating costs Storeroom Machining Assembly #of Employees 0 0 40 10 5 55 140 250 Square Indirect of Feet LH Requisitions 0 0 0 25000 0 12000 0 0 4500 3000 6000 2000 22000...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT