Operating Department C Service Department A B 1 2 Total Overhead costs Number of employees Square feet of space occupied Hours of press time £100,000 £93,100 £62,100 £237,200 £257,400 £749,800 160 55 40 360 240 855 12,900 7,500 19,000 38,000 30,000 95,000 60,000 172,400 90,000 The company allocates service department costs by the direct method in the following order: A (number of employees), B (space occupied), and C (hours of press time). The company makes no distinction between variable and fixed service department costs. Required: How much overhead cost would be allocated to each operating department? (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) Service Departments Operating Departments Total Overhead costs Allocation: Department A: Department B: Department C: Total overhead costs after allocations
Operating Department C Service Department A B 1 2 Total Overhead costs Number of employees Square feet of space occupied Hours of press time £100,000 £93,100 £62,100 £237,200 £257,400 £749,800 160 55 40 360 240 855 12,900 7,500 19,000 38,000 30,000 95,000 60,000 172,400 90,000 The company allocates service department costs by the direct method in the following order: A (number of employees), B (space occupied), and C (hours of press time). The company makes no distinction between variable and fixed service department costs. Required: How much overhead cost would be allocated to each operating department? (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) Service Departments Operating Departments Total Overhead costs Allocation: Department A: Department B: Department C: Total overhead costs after allocations
Chapter5: Process Costing
Section: Chapter Questions
Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...
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