Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Cafeteria Services has costs of $205,000 and Maintenance has costs of $195,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are: Cafeteria Services 5 Maintenance 6 Assembly Department 7 Packaging Department 11
| Maintenance total cost is allocated to the Packaging Department | $150,486 | ||||
| Calculated as below: | |||||
| Cafeteria- Services Distribution Work Sheet | |||||
| Maintenance | Assembly | Packaging | |||
| Cafeteria- Services Distribution ($205,000) | |||||
| Maintenance | ($205000*6/24) | $ 51,250 | |||
| Machining | ($205000*7/24) | $ 59,792 | |||
| Assembly | ($205000*11/24) | $ 93,958 | |||
| Total Cafeteria- Services cost allocated | $ 51,250 | $ 59,792 | $ 93,958 | ||
| Maintenance Cost before any allocation | $ 195,000 | ||||
| Cafeteria- Services cost allocated | $ 51,250 | ||||
| Maintenance total Cost to be allocated to production departments | $ 246,250 | ||||
| Maintenance total Cost Distribution Work Sheet | |||||
| Assembly | Packaging | ||||
| Maintenance- Distribution ($246500) | |||||
| Assembly | ($246250*7/18) | $ 95,764 | |||
| Packaging | ($246250*11/18) | $ 150,486 | |||
| Total Service department cost allocated | $ 95,764 | $ 150,486 | |||
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Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly...
Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Cafeteria Services has costs of $295,000 and Maintenance has costs of $175,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest...
Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Cafeteria Services has costs of $275,000 and Maintenance has costs of $280,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest...
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Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a direct allocation method where service departments are allocated only to production departments. All allocations are based on total employees. Computer Operations has costs of $175,000 and Maintenance Services has costs of $195,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are: Computer...
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Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $120,000 and Maintenance Services has costs of $110,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing...
Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $185,000 and Maintenance Services has costs of $170,000 before any allocations. What amount of Maintenance Services total cost is allocated to the...
Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a direct allocation method where service departments are allocated only to production departments. All allocations are based on total employees. Computer Operations has costs of $190,000 and Maintenance Services has costs of $145,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are: Computer...
Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a direct allocation method where service departments are allocated only to production departments. All allocations are based on total employees. Computer Operations has costs of $105,000 and Maintenance Services has costs of $160,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are: Computer...