Question

Yumee Products Inc. is divided into five departments, Mixing, Blending, Finishing, Factory Office, and Building Maintenance. The first three departments are engaged in production work. Factory Office and Building Maintenance are service departments. During the month of June, the following factory over- head was incurred for the departments:


The bases for distributing service department expenses to the other departments follow:
Building Maintenance­On the basis of floor space occupied by the other departments as follows: Mixing, 10,000 sq ft; Blending, 4,500 sq ft; Finishing, 10,500 sq ft; and Factory Office, 7,000 sq ft.
Factory Office­On the basis of number of employees as follows: Mixing, 30; Blending, 20; and Finishing, 50.

Required:
Prepare a schedule showing the distribution of the service departments' expenses using the direct distributionmethod.


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  • CreatedMay 05, 2014
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