Departments | Employees | Kilowatt Hours Used | Work Orders Issued |
---|---|---|---|
Furniture | 30 | 5,180 | 100 |
Decor | 10 | 8,060 | 60 |
Power | 6 | ||
Maintenance | 4 |
Power department costs are $26,000. Maintenance Department costs are $30,000. Personnel Department costs are $4,000. The Personnel Department provides services to all departments. Use the step-down method of service department cost allocation and determine the amount of service department costs (Personnel, Power, and Maintenance) that will be charged to the Furniture Department.
Select one:
a. $41,210
b. $18,790
c. $0
d. $31,710
Step down method
Power | Maintenance | Furniture | Decor | |
Personnel department | 480 | 320 | 2400 | 800 |
Power department | 10360 | 16120 | ||
Maintenance department | 18950 | 11370 | ||
Total | 31710 | 28290 | ||
So answer is d) $31710
Departments Employees Kilowatt Hours Used Work Orders Issued Furniture 30 5,180 100 Decor 10 8,060 60...
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Question 22 (3.5 points) 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 $235,000 and Maintenance has costs of $250,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging...