Givinci has two operating (production) departments supported by a number of service departments. Machining Department/ Assembly Department
Question:
Givinci has two operating (production) departments supported by a number of service departments.
Machining Department/ Assembly Department
Sales 724,404 /$356,796
Cost of goods sold 327,600/ 121,200
Direct expenses:
Salaries 122,400/ 85,700
Insurance 20,200 / 11,000
Utilities 23,900 / 13,900
Depreciation 20,700 / 11,500
Maintenance 7,000 / 4,700
The company has also incurred the following indirect costs.
Salaries $36,700
Insurance 5,500
Utilities 2,000
Depreciation 13,800
Maintenance 29,400
Office expenses 71,100
Indirect costs are allocated as follows:
- salaries on the basis of sales,
- office expenses on the basis of the number of employees,
- insurance, utilities, depreciation, and maintenance on the basis of square footage.
Additional information about the departments follows:
Department Square Footage Number of employees
Machining 14,535 78
Assembly 4,845 52
What is the Departmental Contribution to Overhead for the Givinci Dept?
What is the Departmental Contribution to Overhead for the Givinci Dept.?
What is the indirect expense for Salaries to the Givinci Dept.?
What is the indirect expense for Salaries to the Givinci Dept.?
What is the indirect expense for Insurance to the Givinci Dept.?
What is the indirect expense for Insurance to the Givinci Dept.?
What is the indirect expense for Office Expenses to the Givinci Dept.?
What is the indirect expense for Office Expenses to the Givinci Dept.?
Expert Answer:
To calculate the departmental contribution to overhead for the Givinci Dept we need to allocate the ... View the full answer
