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
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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