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Russet Company has two service departments and two producing departments. Budgeted costs and budgeted activity in the various departments for the most recent year are presented below: Custodial Cutting Assembly Services Cafeteria Department Department Overhead costs P252,000 P140,000 P600,000 P900,000 .... Square feet of space occupied. Number of employees... 1,000 2,000 8,000 10,000 20 30 150 200 Machine-hours . 40,000 60,000 Service Department costs are allocated to producing departments with the costs of Custodial Services allocated first on the basis of square feet of space occupied. The costs of the Cafeteria are allocated on the basis of number of employees. Predetermined overhead rates in the Cutting and Assembly Departments are based on machine-hours. Round all calculations to the nearest dollar. 4. Under the step method of allocation, the amount of cost allocated from the Cafeteria to the Cutting Department would be: 5. Under the step method of allocation, the amount of cost allocated from the Cafeteria to Custodial Services would be:

Russet Company has two service departments and two producing departments. Budgeted costs and budgeted activity in the various departments for the most recent year are presented below: Custodial Cutting Assembly Services Cafeteria Department Department Overhead costs P252,000 P140,000 P600,000 P900,000 .... Square feet of space occupied. Number of employees... 1,000 2,000 8,000 10,000 20 30 150 200 Machine-hours . 40,000 60,000 Service Department costs are allocated to producing departments with the costs of Custodial Services allocated first on the basis of square feet of space occupied. The costs of the Cafeteria are allocated on the basis of number of employees. Predetermined overhead rates in the Cutting and Assembly Departments are based on machine-hours. Round all calculations to the nearest dollar. 4. Under the step method of allocation, the amount of cost allocated from the Cafeteria to the Cutting Department would be: 5. Under the step method of allocation, the amount of cost allocated from the Cafeteria to Custodial Services would be:

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Russet Company has two service departments and two producing departments. Budgeted costs and budgeted activity in the various departments for the most recent year are presented below: Custodial Cutting Assembly Services Cafeteria Department Department Overhead costs . P252,000 P140,000 P600,000 P900,000 Square feet of space occupied. 1,000 2,000 8,000 10,000 Number of employees... Machine-hours . 20 30 150 200 40,000 60,000 Service Department costs are allocated to producing departments with the costs of Custodial Services allocated first on the basis of square feet of space occupied. The costs of the Cafeteria are allocated on the basis of number employees. Predetermined overhead rates in the Cutting and Assembly Departments are based on machine-hours. Round all calculations to the nearest dollar. 4. Under the step method of allocation, the amount of cost allocated from the Cafeteria to the Cutting Department would be: 5. Under the step method of allocation, the amount of cost allocated from the Cafeteria to Custodial Services would be:
Transcribed Image Text:Russet Company has two service departments and two producing departments. Budgeted costs and budgeted activity in the various departments for the most recent year are presented below: Custodial Cutting Assembly Services Cafeteria Department Department Overhead costs . P252,000 P140,000 P600,000 P900,000 Square feet of space occupied. 1,000 2,000 8,000 10,000 Number of employees... Machine-hours . 20 30 150 200 40,000 60,000 Service Department costs are allocated to producing departments with the costs of Custodial Services allocated first on the basis of square feet of space occupied. The costs of the Cafeteria are allocated on the basis of number employees. Predetermined overhead rates in the Cutting and Assembly Departments are based on machine-hours. Round all calculations to the nearest dollar. 4. Under the step method of allocation, the amount of cost allocated from the Cafeteria to the Cutting Department would be: 5. Under the step method of allocation, the amount of cost allocated from the Cafeteria to Custodial Services would be:
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