Assume the following information in the chart: Security Dept. Cafeteria Dept. Production A Dept. Production B...
Assume the following information in the chart:
| Security Dept. | Cafeteria Dept. | Production A Dept. | Production B Dept. |
| 1,000 square feet | 4,000 square feet | 3,000 square feet | 3,000 square feet |
| 10 employees | 6 employees | 40 employees | 50 employees |
| $100,000 cost | $200,000 cost | $400,000 cost | $300,000 cost |
What would be the most appropriate cost driver to allocate the costs from the Cafeteria Department?
Answer choices
A) Number of chicken patties served
B) Total food costs
C) Square feet
D) Employees
Homework Answers
Answer) B) Total Food Costs
Explanation:
Most appropriate cost driver would be total food costs. Other variable costs are directly influenced by food cost.
No. of employees and Square feet cannot accurately be used to allocate restaurant costs.
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Assume the following information in the chart:
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Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevan details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Cafeteria Cutting Assembly Department Department Department Department Department costs $310,000 $169,000 $1,504,000 $680,000 Square feet 50 5,000 1,000 4,000 Number of employees Allocate the support department costs to the production departments using the sequential method. Allocate the support department...
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Support department cost allocation-sequential method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Cafeteria Cutting Assembly Department Department Department Department Department costs $310,000 $169,000 $1,504,000 $680,000 Square feet 50 5,000 1,000 4,000 Number of employees 10 3 30 10 Allocate the support department costs to the production...
Support department cost allocation-reciprocal services method Becker Tabletops has two support departments ( Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Department $310,000 50 10 Department costs Square feet Number of employees Cafeteria Department $169,000 5,000 3 Cutting Department $1,504,000 1,000 30 Assembly Department $680,000 4,000 10 Allocate the support department costs to...
Support department cost allocation-direct method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Cafeteria Cutting Assembly Department Department Department Department Department costs $310,000 $169,000 $1,504,000 $680,000 Square feet 50 5,000 1,000 4,000 Number of employees 10 3 30 10 Allocate the support department costs to the production...
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