Arbon Company has three service departments and two operating departments. Selected data for the five departments are
Fantastic news! We've Found the answer you've been seeking!
Question:
Arbon Company has three service departments and two operating departments. Selected data for the five departments are presented below:
Service Departments | Operations Departments | |||||||||||||||||
Management | Regarding the maintenance worker | Equipment Maintenance | preparation | finishing | Total | |||||||||||||
Costs | $ | 84,000 | $ | 67,800 | $ | 36,000 | $ | 256,100 | $ | 498,600 | $ | 942,500 | ||||||
Number of Employees | 80 | 60 | 240 | 600 | 300 | 1,280 | ||||||||||||
Square meter occupied area | 300 | 1,200 | 1,000 | 2,000 | 7,000 | 11,500 | ||||||||||||
machine-clock | 10.000 | 30,000 | 40,000 | |||||||||||||||
The company allocates service department costs in the following order: Administrative (number of employees), Cleaning (footprint), and Equipment Maintenance (machine-hour).
Required:
Assuming the company uses the direct method instead of the staggered method to allocate service department costs, how much overhead is assigned to each business department? (Negative amounts should be indicated with a minus sign.)
Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
Posted Date: