Cafeteria cost allocated to the Surgery department = $40,000 x 15,000/(15,000 + 45,000) = $40,000 x 15,000/60,000 = $10,000
Answer: $10,000
The California Community Hospital has two service departments, Cafeteria and Housekeeping, and two operating departments, Surgery...
Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Information Technology and Administration, and two operating departments, Surgery and Recovery. Service Department Operating Department Information Technology Administration Surgery Recovery Departmental costs $33,912 $35,157 $503,570 $701,610 Computer workstations 28 25 59 49 Employees 24 10 90 45 Information Technology Department costs are allocated on the basis of computer workstations and Administration Department costs are allocated on the basis of...
The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Service Departments Operating Departments Administration Janitorial Maintenance Binding Printing Total Costs $156,800 $117,600 $53,760 $308,000 $481,600 $1,117,760 Number of employees 60 35 140 315 210 760 Square feet of space occupied 15,000 10,000 20,000 40,000 100,000 185,000 Hours of press time 30,000 60,000 90,000 The company allocates service department costs by the step-down method in the following...
Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Service Departments Operating Departments Administrative Janitorial Equipment Maintenance Prep Finishing Total Costs $ 94,000 $ 67,800 $ 36,000 $ 256,100 $ 498,600 $ 952,500 Number of employees 80 60 240 600 300 1,280 Square metres of space occupied 300 1,200 1,000 2,000 7,000 11,500 Machine-hours 30,000 45,000 75,000 The company allocates service department costs by the step-down method in the following...
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Direct Machining Maintenance Cafeteria Assembly Department Machining Assembly Maintenance Costs $120,000 76,000 45,000 37,000 0.1 0.6 0.3 Cafeteria 0.6 0.2 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order...
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 140,000 Assembly 72,000 Maintenance 53,000 — 0.1 0.6 0.3 Cafeteria 33,000 0.8 — 0.1 0.1 Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining...
Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Service Departments Operating Departments Administrative Janitorial Equipment Maintenance Prep Finishing Total Costs $ 84,000 $ 67,800 $ 36,000 $ 256,100 $ 498,600 $ 942,500 Number of employees 80 60 240 600 300 1,280 Square metres of space occupied 300 1,200 1,000 2,000 7,000 11,500 Machine-hours 10,000 30,000 40,000 The company allocates service department costs by the step-down method in the following...
Allie, Inc. has two service departments and two operating departments. Allie allocates service department costs using the step-down method, with the service department with the highest cost allocated first. Initial cost for service department 1 was $140,000, and for service department 2, $100,000. Service department 1 is allocated on the basis of department employees, while service department 2 is allocated on the basis of square feet. Cost driver usage is as follows: Service 1 Service 2 Operating 1 Operating...
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Machine-hours Labor-hours Department direct costs Maintenance Personnel Printing Developing 1,000 1,000 3,000 500 500 2,000 $5,000 $12,000 $15,000 $10,000 Required: Use the direct...
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 145,000 Assembly 75,000 Maintenance 49,000 — 0.1 0.5 0.4 Cafeteria 41,000 0.6 — 0.2 0.2 Required: Use the step method to allocate the service costs, using the following:...
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel Printing Developing Machine-hours — 1,000 1,000 3,000 Labor-hours 500 — 500 2,000 Department direct costs $ 5,000 $ 12,000 $ 15,000...