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.)
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 |
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. (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. (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...
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