The Helium Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available: * (2 Points) Human Resources Janitorial Sales #1 Sales #2 Sales #3 Budgeted cost P45,000 P30,000 Space in square feet 4,000 30,000 50,000 1,000 20,000 15 Number of employees 5 10 45 30 Using the direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is:

The Helium Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available: * (2 Points) Human Resources Janitorial Sales #1 Sales #2 Sales #3 Budgeted cost P45,000 P30,000 Space in square feet 4,000 30,000 50,000 1,000 20,000 15 Number of employees 5 10 45 30 Using the direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is:

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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The Xtra Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available: Human Resources Janitorial Sales #1 Sales #2 Sales #3 Budgeted cost $ 45,000 $ 30,000 Space in Square Feet 4,000 1,000 20,000 30,000 50,000 Number of employees 5 10 15 45 30 Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 2 is: $13,500. $20,250. $19,286. $21,316. $22,500.
Snowflake Company has two service departments (S1 and S2) and two producing departments (P1 and P2). Department S1 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet. Data on direct department costs, number of employees, and space occupied are as follows: Direct dept. costs Number of employees Space occupied P1 P2 0 S1 S2 P1 $15,000 $22,000 $55,000 0 10 2,000 If Snowflake uses the direct method, what is the ratio representing the portion of Department S2 allocated to P2? 25 5 1,000 3,000 P2 $60,000 30 7,000
Madison Park Co-op, a whole foods grocery and gift shop, provided the following data for its service department cost allocations: Service Departments Administration $ 200,000 Operating Departments Groceries Gifts $ 3,870,000 2,730 490 700 9,200 Departmental costs before allocations Employee-hours Space occupied-square feet Required: Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate Administration first on the basis of employee-hours and then Janitorial based on space occupied. Departmental costs before allocations Allocations: Janitorial $ 60,000 Administration costs Janitorial costs Total costs after allocations Note: Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Service Departments Administration Janitorial 320 1,200 Operating…
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Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Janitorial Department Cafeteria Department Cutting Department Assembly Department Square Feet a. 80% b. 20% Oc. 10% Od. 9.9% Number of Employees 20 10 60 20 100 10,000 2,000 8,000 The percentage (proportional) usage of the Janitorial Department by the Cutting Department is
The Helium Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available: Options: a. P8,571 b. P15,000 c. P9,000. d. P10,350 e. none of the above
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Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs. It has the following information about its two service departments and two production departments, Cutting and Assembly: Line Item Description Costs Square Feet Number ofEmployees Janitorial Department $450,000 100 20 Cafeteria Department 200,000 10,000 10 Cutting Department 1,500,000 2,000 60 Assembly Department 3,000,000 8,000 20 How much of the Janitorial Department’s $450,000 costs is allocated to the Cutting Department? a. $45,000 b. $44,550 c. $360,000 d. $90,000
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The following departmental information is for the four departments at Samoa Industries. Number of Total Cost Cost Driver Square Feet Employees Janitorial $150,000 Square footage serviced 200 40 Cafeteria 50,000 Number of employees 20,000 12 Cutting 1,125,000 Assembly 1,100,000 4,000 16,000 120 40 ? The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments. Determine the proportional (percentage) usage of the Janitorial Department by the (a) Cafeteria, (b) Cutting, and (c) Assembly departments. a. Cafeteria Department b. Cutting Department c. Assembly Department % % % +