Question

Sasha Company allocates the estimated $195,600 of its accounting department costs to its production and sales...

Sasha Company allocates the estimated $195,600 of its accounting department costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and employees follows:

Department: Accounting

Employees: 4

Department: Production

Employees: 26

Department: Sales

Employees: 14

How much of the accounting department costs will be allocated to the production?

A) 128,140

B) 129,140

C) 117,140

D) 127,140

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Accounting department costs = $195,600

Production Department Employees = 26

Sales Department Employees = 14

Total employees of Production Department and Sales Department = Production Department Employees + Sales Department Employees

= 26 + 14

= 40

Accounting department costs allocated to the production department = Accounting department costs x Production Department Employees/Total employees of Production Department and Sales Department

= 195,600 x 26/40

= $127,140

Correct option is (D)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Sasha Company allocates the estimated $195,300 of its accounting department costs to its production and sales...
Sasha Company allocates the estimated $195,300 of its accounting department costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and employees follows: Department Employees Accounting 4 Production 39 Sales 16 How much of the accounting department costs will be allocated to the production?
Interdepartment Services: Step Method O'Brian's Department Stores allocates the costs of the Personnel and Payroll departments...
Interdepartment Services: Step Method O'Brian's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. O'Brian's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the basis of gross payroll. Cost and allocation information for June is as follows: Personnel Payroll Housewares Clothing Furniture Direct...
Interdepartment Services: Step Method O'Brian's Department Stores allocates the costs of the Personnel and Payroll departments...
Interdepartment Services: Step Method O'Brian's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. O'Brian's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the basis of gross payroll. Cost and allocation information for June is as follows: Personnel Payroll Housewares Clothing Furniture Direct...
Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all...
Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period: Service Depts. Production Depts. Payroll Maintenance Milling Assembly Direct costs $ 21,600 $ 28,500 $ 82,500 $ 117,400 No. of...
9. Pepper Department store allocates its service department expenses to its various operating (sales) departments. The...
9. Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Basis for allocation Amount Rent Square feet of floor space $ 32,000 Advertising Amount of dollar sales $ 38,000 Administrative Number of employees $ 53,000 The following information is available for its three operating (sales) departments: Department Square Feet Dollar Sales Number of employees A 3,600 $ 248,000 5 B 5,400 $ 372,000 7 C...
Jake’s Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $160,000 are...
Jake’s Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $160,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $40,000 are allocated based on the number of employees. The costs of operating departments A and B are $80,000 and $120,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Support Departments Production Departments Maintenance Department Personnel Department A B Budgeted costs $160,000 $40,000 $80,000 $120,000 Budgeted maintenance-hours NA 400...
Ant Corp. has two service departments and two operating departments. The company allocates service departmental costs...
Ant Corp. has two service departments and two operating departments. The company allocates service departmental costs to operating departments using the step-down method. Operating data for these departments for last year are as follows: Service Departments Operating Departments Personnel Maintenance Cutting Finishing Departmental costs $144,000 $84,000 $12,000 $47,000 Number of employees 35 30 60 90 Machine-hours 0 0 210 150 Personnel costs are allocated first on the basis of number of employees and Maintenance costs are allocated second on the...
12-7: Xancar Corporation has three factories, and allocates the costs of two service departments to these...
12-7: Xancar Corporation has three factories, and allocates the costs of two service departments to these factories using the Direct Method of service department cost allocation. The table below shows the costs incurred by these two service departments for the most recent year, the allocation base used to allocate the costs of each department, and the amount of the allocation base incurred by the factories and service departments. Costs incurred Allocation base Accounting & Computing Human Resources Factory in Zancobar...
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of...
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $792,000 are allocated on the basis of machine hours. The Accounting Department's costs of $171,600 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $250,000 and $450,000, respectively. Maintenance Accounting A B Machine hours 590 100 3,600 360 Number of employees 2 2 8 4 What is the Maintenance Department's...
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated...
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $170,000 are allocated based on the number of employees. The costs of operating departments A and B are $188,000 and $282,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Support Departments Departments   Maintenance Department Personnel Department A B Budgeted costs $300,000 $170,000 $188,000 $282,000 Budgeted maintenance-hours NA 860 1280...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT