Anytime fitness has two operating departments- Programming & Classes and Individual fitness. There are Also two service centers- Janitorial and Cafeteria. Janitorial costs are allocated based on square footage, while Cafeteria costs are allocated based on number of employees. The costs traceable to the operating and service center during 2017 were as follows: Service Centers Janitorial Cafeteria Operating Departments Programming & Classes P 8,000 Materials P 10,000 P 200,000 Individual Fitness P 5,000 150,000 Labor 100,000 300,000 265,000 MOH 20,000 40,000 75,000 90,000 Total 130,000 540,000 348,000 245,000 Square footage 1,600 8,000 14 24,000 19 32,000 6 No. of Employee 5 In addition to these costs, the Cafeteria generates revenues of P480,000. Janitorial is allocated based on square footage and Cafeteria is allocated based on the number of employee. Using the step method to allocate the service center costs, What is the total cost of Programming and classes?
Anytime fitness has two operating departments- Programming & Classes and Individual fitness. There are Also two service centers- Janitorial and Cafeteria. Janitorial costs are allocated based on square footage, while Cafeteria costs are allocated based on number of employees. The costs traceable to the operating and service center during 2017 were as follows: Service Centers Janitorial Cafeteria Operating Departments Programming & Classes P 8,000 Materials P 10,000 P 200,000 Individual Fitness P 5,000 150,000 Labor 100,000 300,000 265,000 MOH 20,000 40,000 75,000 90,000 Total 130,000 540,000 348,000 245,000 Square footage 1,600 8,000 14 24,000 19 32,000 6 No. of Employee 5 In addition to these costs, the Cafeteria generates revenues of P480,000. Janitorial is allocated based on square footage and Cafeteria is allocated based on the number of employee. Using the step method to allocate the service center costs, What is the total cost of Programming and classes?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 3E: Blue Africa Inc. produces laptops and desktop computers. The companys production activities mainly...
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a. Using the step method to allocate the service center costs, What is the total cost of Programming and classes?
b. Using the direct method of allocating service center costs, Compute the total cost of Individual Fitness
c.Using the algebraic method of allocating service center costs Determine the total costs of Programming and Classes
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