Question: Problem 1 1 - 2 2 ( Algo ) Service Department Charges [ LOT 1 - 4 ] Shapp Motor Company has bab operating divisions

Problem 11-22(Algo) Service Department Charges [LOT1-4]
Shapp Motor Company has bab operating divisions-an Auto Divtion asd a Truck Diviulon. The compahy has a caleteria that serves The employees of both diviaions. The costs of operating the caleteris are hudgeted at $7.060 per month plus $0.0. per meal served. The compery poyn aff the cost of the ments.
The fied costs of the cafeteris ane debermined by peakperiod reouirements. The Autb Division is responsible for 64 sh of the peakperiod requiremerts, and the Thuck Divigion is responsible for the other 36ts.
For Junt, the Auto Division estimabed a would need 97,000 mesle served, and the Truck Disision estimated it would need 67000 mesls served. Howevec, dve to unexpected layotls of employees during the month, only 67000 meals mere served to the Auto Divislon. Ahother 67,000 mesls were served to the Thuck Divion as planned.
The cafetectas achaal fleed costs for Juhe totaled $77009 and its actual meal conts holaled $100.400.
Aequired:
2. Aswese the compary follows the pratlice of alpcating alf caloleria conts incured each month to the divisions in proportion io the number of masls served te each divilios during the mont. On this bais, how much cost woudd be allocabed to each division for June?
Nebe: fnd your intermediate calculations te 2 decimal places.
Problem 1 1 - 2 2 ( Algo ) Service Department

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!