Fact pattern: Gemini Inc., has two service departments (the Systems Department and the Facilities Department) that provide support to the company’s three production departments (Machining Department, Assembly Department, and Finishing Department). The overhead costs of the Systems Department are allocated to other departments on the basis of computer usage hours. The overhead costs of the Facilities Department are allocated based on square feet occupied (in thousands). Other information pertaining to Logo is as follows:
		Computer	Square Feet
Department	Overhead	Usage Hours	Occupied
Systems	$120,000	350	1,750
Facilities	24,000	1,050	1,050
Machining	240,000	4,200	3,500
Assembly	330,000	2,100	5,250
Finishing	372,000	3,150	8,750
Total		10,850	20,300
Logo employs the direct method of allocating service department costs. The overhead of the Systems Department would be allocated by dividing the overhead amount by
			A	1,400 hours
			B	10,500 hours
			C	9,450 hours
			D	10,850 hours
How much of the Facilities overhead would the Assembly Department receive?
			A	$7,200
			B	$6,207
			C	$5,333
			D	$6,545

Answer rating: 100% (QA)

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