Gemini Inc. operates a goods store that caters for government, private individuals, and organizations. The company has three service departments and two operating departments. Data on the five departments are presented below. Service Departments Operating Time left 0:23:06 Departments Human Resources Information Security Systems Corporate Consumer Sales Sales Total Overhead costs $81,000 $61,000 $32,000 $242,000 $486,000 $902,000 21 10 40 30 101 325 1820 1700 4,165 No. of employees Processing time (in minutes) 320 Sq. ft. of Space Occupied 2,000 9,000 14,000 56,000 81,000 The allocation base for Human Resources is the number of employees. Information systems allocation base is processing time. And square feet of space occupied is the allocation base for Security. Costs are apportioned using the Step-down Method. What are the Total Costs after Apportionment for the Corporate Sales and Consumer Sales departments? Select one: OA. $322,649 and $579,351 OB. $325,230 and $576,770 OC. $322,245 and $579,755 D. $320,245 and $581,755 Clear my choice

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Gemini Inc. operates a goods store that caters for government, private individuals, and
organizations. The company has three service departments and two operating departments.
Data on the five departments are presented below.
Service Departments
Operating Time left 0:23:06
Departments
Human
Resources
Information Security
Systems
Corporate Consumer
Sales Sales
Total
Overhead costs
$81,000
$61,000 $32,000 $242,000 $486,000 $902,000
21
10
40
30
101
325
1820
1700
4,165
No. of employees
Processing time (in
minutes)
320
Sq. ft. of Space
Occupied
2,000
9,000
14,000
56,000
81,000
The allocation base for Human Resources is the number of employees. Information systems
allocation base is processing time. And square feet of space occupied is the allocation base
for Security. Costs are apportioned using the Step-down Method.
What are the Total Costs after Apportionment for the Corporate Sales and Consumer Sales
departments?
Select one:
OA. $322,649 and $579,351
OB. $325,230 and $576,770
OC. $322,245 and $579,755
D. $320,245 and $581,755
Clear my choice
Transcribed Image Text:Gemini Inc. operates a goods store that caters for government, private individuals, and organizations. The company has three service departments and two operating departments. Data on the five departments are presented below. Service Departments Operating Time left 0:23:06 Departments Human Resources Information Security Systems Corporate Consumer Sales Sales Total Overhead costs $81,000 $61,000 $32,000 $242,000 $486,000 $902,000 21 10 40 30 101 325 1820 1700 4,165 No. of employees Processing time (in minutes) 320 Sq. ft. of Space Occupied 2,000 9,000 14,000 56,000 81,000 The allocation base for Human Resources is the number of employees. Information systems allocation base is processing time. And square feet of space occupied is the allocation base for Security. Costs are apportioned using the Step-down Method. What are the Total Costs after Apportionment for the Corporate Sales and Consumer Sales departments? Select one: OA. $322,649 and $579,351 OB. $325,230 and $576,770 OC. $322,245 and $579,755 D. $320,245 and $581,755 Clear my choice
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