Question

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 personnel 21 21 63
Sq. ft. of space 11,200 16,200


The total cost of operating the Milling Department for the current period is (Do not round your intermediate calculations):

Multiple Choice

  • $15,480.

  • $17,763.

  • $4,320.

  • $100,235.

  • $98,603.

    Flamingos, Inc. has four departments. The Administrative Department costs are allocated to the other three departments based on the number of employees in each and the Maintenance Department costs are allocated to the Assembly and Packaging Departments based on their occupied space. Data for these departments follows:

    Admin. Maintenance Assembly Packaging
    Operating costs $ 50,000 $ 35,000 $ 90,000 $ 65,000
    No. of employees 3 10 7
    Sq. ft. of space 2,000 3,000


    The total amount of the Administrative Department's cost that would eventually be allocated to the Packaging Department is:

    Multiple Choice

  • $7,800.

  • $19,500.

  • $17,500.

  • $29,500.

  • $22,000.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution :

(1) The Answer is (d) $ 100,235.

(2) The Answer is (c) $ 17,500.

Woking :

(1)

Payroll Maintenance Millng Assembe
Department Cost before Allocation $ 21,600 $ 28,500 $ 82,500 $ 117,400
Allocation :
Payroll (21:21:63) ($ 21,600) $ 4,320 $ 4,320 12,960
Maintenance (11,200 : 16,200) ($ 32,820) $ 13,415 $ 19,405
Total $ 100,235 $ 149,765

(2)

Total Cost of Administrative Department = $ 50,000

Total Employees = 20

Allocation to Packing Department = $ 50,000 / 20 * 7

= $ 17,500  

Please vote up and write your doubts in comment section. Would be glad to help you further.

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
Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service...
Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department. If allocated maintenance cost is based on floor space occupied by each of the other departments, compute the amount of maintenance cost allocated to the Cutting Department. (Do not round your intermediate computations.) Maintenance Cutting Assembly Packaging Direct costs $ 18,000 $ 21,000 $ 61,000 $ 36,000 Sq. ft. of space 900 1,400 2,400 3,400 No. of employees 10 10 10 10 Multiple...
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 $170,000 and Maintenance has costs of $220,000 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...
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 $250,000 and Maintenance has costs of $245,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest...
Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments...
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 $195,000 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...
Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments...
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 $150,000 and Maintenance Services has costs of $125,000 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...
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 $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...
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 $125,000 and Maintenance Services has costs of $185,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing...
1. Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments...
1. 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 $150,000 and Maintenance has costs of $295,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to...
Av-Y6 Company operates three service departments, administration, maintenance, and personnel and two production departments, assembly and...
Av-Y6 Company operates three service departments, administration, maintenance, and personnel and two production departments, assembly and packaging. Information for the three service departments is given below: Admin Maint Person Directly traced overhead $65,000 $33,000 $74,000 Square feet occupied 2,000 3,500 3,000 Number of employees 42 24 30 Maintenance hours 2,500 2,000 4,000 Information for the two production departments is given below: Assembly Packaging Directly traced overhead $167,030 $114,090 Square feet occupied 2,100 1,400 Number of employees 36 18 Maintenance hours...
Av-Y6 Company operates three service departments, administration, maintenance, and personnel and two production departments, assembly and...
Av-Y6 Company operates three service departments, administration, maintenance, and personnel and two production departments, assembly and packaging. Information for the three service departments is given below: Admin Maint Person Directly traced overhead $69,000 $45,000 $78,000 Square feet occupied 2,000 3,500 3,000 Number of employees 36 24 30 Maintenance hours 2,500 2,000 4,000 Information for the two production departments is given below: Assembly Packaging Directly traced overhead $167,040 $122,090 Square feet occupied 2,100 1,400 Number of employees 42 18 Maintenance hours...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT